Home News Almost half of savers rely on the second pillar despite inflation, the survey shows

Almost half of savers rely on the second pillar despite inflation, the survey shows

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Almost half of savers rely on the second pillar despite inflation, the survey shows

Almost half of savers rely on the state for financial security in old age, despite inflation and government interventions not benefiting the second pillar. This was reported on Friday by the Porto investment platform based on the Investment Literacy Index survey, in which 1,050 respondents took part.

Despite the growth of pension funds, many investors in the second pillar found a lower estimated amount of their future pension in their account statement than a year ago.

“In the current statements, savers see the amount of the future pension from the second pillar adjusted for inflation. The future pension is thus recalculated to today’s value of money. Inflation cannot be avoided and will also affect pensions from the state’s first pillar,” said platform analyst Marek Malina.

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The survey showed that the reduction of the contribution to the second pillar from 5.5 percent to four percent is perceived negatively by 75 percent of respondents who are saving for retirement. Almost half of the respondents do not plan to react to this situation. However, a similar proportion of respondents say that they will focus on savings outside the second pillar.

Anetta Čaplánová from the Faculty of Economics of the University of Economics in Bratislava said that when procrastinating, it is also necessary to remember the fees associated with investing. This should be long-term, while it is not appropriate to withdraw money that one is putting aside in retirement savings.

With a long-term investment horizon, according to the platform, it is enough to set aside even a relatively small amount every month to build up a financial reserve.

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For example, with a 20-year investment of 50 euros per month, an investor can count on savings of more than 26,000 euros in a neutral scenario and stock portfolio with an average expected return of eight percent per year.

“Building savings beyond the scope of mandatory pension contributions is the right approach. This can also be done with the help of voluntary contributions to the second pillar, where possible future interventions by the state remain an issue. The alternative is to save outside of it, for example in index funds, which also prove themselves directly in the second pillar,” added Malina.

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