Savings for a Second Pension are Melting Because of the Crisis in Bulgaria

Business » FINANCE | June 2, 2020, Tuesday // 11:39| Views: | Comments: 0
Bulgaria: Savings for a Second Pension are Melting Because of the Crisis in Bulgaria

Processes in recent months have had an impact on returns in individual accounts managed by private pension funds as savings for a second pension.

"The processes that affected were not positive, they were bad," financial analyst Ivan Stoykov told BNR's Horizont. The savings of those born after 1959 in a universal pension fund for a second pension underwent adjustments that reduced them, he noted.

The declines, even the collapse of stock exchanges around the world have led to these negatives, Stoykov added.

The funds on the individual accounts are invested by the pension funds managing them and when there are such drastic declines on the stock exchanges, a negative return is registered.

The negative phenomena on the capital markets cannot but affect the profitability in the individual accounts for a second pension, the analyst explained. The effect is clearly visible - half a billion levs of these funds no longer exist.

This is the amount lost by all those who make contributions for a second pension.

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