The bad situation on the financial markets with the onset of the coronavirus crisis in the first quarter also affected the development of the value of assets in pension funds. Dynamic funds in supplementary pension funds lost about 18 percent on average in the first quarter, and about seven percent.

The first thing is that the value of assets in pension funds returns to their original values. She should go a long way ahead of her. However, at the end of May, she managed to erase half of the loss on average with a dynamic fund. In the case of external funds, these are even three quarters, according to the president of the Association of Pension Companies R Ale Poklop.

According to him, even the onset of the crisis associated with coronavian pandas did not break the court in the pension fund, because new contracts continued to grow at the same pace as last year.

How did the financial markets in May

His words also correspond to developments in the stock and bond markets. On average, stock markets grew by about ten percent in April and maintained the same trend in May, when they added about three percent on average. Then some technological shares got in the way. The fall in energy stocks also stopped due to the gradual rise in oil prices.

The main driver of rising asset prices was the gradual release of preventive measures against covid-19 orders. Other reasons include the relatively positive first coming from the pharmaceutical industry. The system of a turn for the better is also massive doping, which in the form of support to the economies pumps individual states and central banks, explains the investment analyst of the financial group Partners Martin Mat.

According to him, there is a high probability that some dynamic funds will be in the red in the first half of the year even after the coronavirus crisis, and the current slump will become just a short-term historical thorn episode.

The support of central banks was also noticeably honored by bonds and conservative pension funds. This is due to both the lower base years of rates and the purchase of bonds by central banks, which pushed their prices up. The bond funds exchanged for safe bonds, so in May they issued an average of it since the beginning of the year, and even in June the pace of appreciation did not slow down and positive performance in the current situation should be the rule. Investment swaps for risky bonds faded in May gave about three percent of the 13% decline in the first quarter.

The goal of central banks is to reduce deposits and thus free up the level of channels necessary for the maintenance of companies. A novelty of the current measures is the inclusion of purchases on risky bonds, which have never happened before. The reaction was, of course, the rise in bond prices and bond funds, Martin Mat explains, what is happening in the bond markets.

About 4.5 million people retire

In the first quarter of 2020, a total of 4,450,016 employees joined the state-owned pension funds. Compared to the end of last year, the number of participants increased by 8,587. The total volume of disputes managed in transformed and employee funds increased by 3.625 billion to 490.74 billion crowns.

But Poklop warns that even if the household gets into financial needs, I can always send a sent contribution to the fund. In connection with this, I want to make sure that for the period of payment, they do not incur a penalty, the contract is active for a long time. The participant only has no entitlement to the central contribution and can renew the payments at any time later and get the entitlement to the central contribution again, he explains.

Spoen is definitely not in town. In this way, the stadium not only loses its contribution, but also all the tax benefits that can be saved in retirement.

Day 2007 Go Get Old Previous post Day 2007, go get old
It Is Possible To Go To The Pension Two Days Next post It is possible to go to the pension two days later, not the dayD. How are the conditions?