Changes in investment strategy for second pension pillar clients

The Labor Ministry is already working on changes in the investment strategy for second pension pillar clients. Some 80% of the second pillar savings are in guaranteed funds that produce pitiful returns; since their introduction in 2013, Slovaks have lost out on €1bn in potential yields. Details of the future allocation of savings are yet to be worked out; the Finance Ministry proposed two alternatives: under the first, clients would invest all their savings in equities during the first half of their working life and then would gradually move some savings into bonds. Under the second alternative, the share of bonds would start to increase after three years of savings. It is unlikely the current government will have time to change the investment strategy.

(HN/1)