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Pension industry accumulates 5.6% of households’ financial wealth.
submited on 08.08.2005 in category Macroeconomic developments
submited on 08.08.2005 in category Macroeconomic developments
In Q2, the net assets of all pension funds operating in Bulgaria (universal, voluntary and occupational) have reached BGN 939.2 million (EUR 480.2 million). For comparison, in Q1 the net assets totaled BGN 860.4 million (EUR 440 million). The penetration rate has increased further – to 2.4% of GDP in June, compared to 1.7 % of GDP in the same period of 2004. The fraction of household wealth accumulated by the pension industry has increased to 5.6%.
?he annual growth rate of pension funds net assets accelerated to 52.6%. However, the expansion remains slower than last year (54.2% annual growth). ? more significant moderation in the growth of universal funds’ capitalization has been registered. By end-June, the savings accumulated in the universal pension funds have increased by 107.3% on annual basis. At the end of 2004, these savings expanded by 128.9 % annually, and further with 114.7% on annual basis in Q1. Such a moderation in growth rates could be attributed to the fact that in 2005 the mandatory contribution rate has remained unchanged, while the growth is supported by increasing number of insured persons and by rising value of pension funds’ investment (increasing return, respectively). In Q2, the voluntary pension funds capitalization increased by 29.9% on annual basis, and the annual growth of occupational funds’ net assets was 36.1%.
The share of voluntary funds in pension insurance savings continues to decrease rapidly, to 38.8% by end-June. For comparison, voluntary funds accounted for 45.6% of pension industry’s net assets in Q2 2004. This process is supplemented by fast expansion of the fraction of pension insurance wealth accumulated in universal funds – from 27.2% in June 2004 to 36.9% in June 2005.
?he annual growth rate of pension funds net assets accelerated to 52.6%. However, the expansion remains slower than last year (54.2% annual growth). ? more significant moderation in the growth of universal funds’ capitalization has been registered. By end-June, the savings accumulated in the universal pension funds have increased by 107.3% on annual basis. At the end of 2004, these savings expanded by 128.9 % annually, and further with 114.7% on annual basis in Q1. Such a moderation in growth rates could be attributed to the fact that in 2005 the mandatory contribution rate has remained unchanged, while the growth is supported by increasing number of insured persons and by rising value of pension funds’ investment (increasing return, respectively). In Q2, the voluntary pension funds capitalization increased by 29.9% on annual basis, and the annual growth of occupational funds’ net assets was 36.1%.
The share of voluntary funds in pension insurance savings continues to decrease rapidly, to 38.8% by end-June. For comparison, voluntary funds accounted for 45.6% of pension industry’s net assets in Q2 2004. This process is supplemented by fast expansion of the fraction of pension insurance wealth accumulated in universal funds – from 27.2% in June 2004 to 36.9% in June 2005.
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