Funds suffered losses, but the drop is not dramatic
Last year's financial results of the Stabilita Complementary Pension Company (DDS)
The year before last, the accounts of savers with Stabilita Complementary Pension Company showed earnings in all funds. And it can be said that the earnings were quite substantial. These days they are receiving the statements of their accounts for last year, with information on how their savings have been successfully increased in the third pillar in 2015. “What message do you have for them?” was the question we put to the Chairman of the Board of Directors and Managing Director of the Stabilita, Mr. Peter Gregor.
“They are not very encouraging, it must be said frankly. After several successful years, last year was different, as it was negatively affected by the turbulent situation in the financial markets. In the middle of the year we were well pleased with our yields, but by the end of the year all those yields had been lost. Nevertheless, although the yields were lost, there is nothing to worry about. Currently the trading is very volatile, and lacks elementary rationality. Stock price trends are determined by short-term investors and speculators. Long-term investors are holding the short straw.” However, according to the Managing Director, in the long term such collapses are always followed by growth.
Pension saving takes several years and fluctuations in funds are not unusual. The behavior of the financial markets can be very unpredictable, and last year it was strongly influenced by many negative events in the world.
Stabilita Managing Director Peter Gregor also emphasized that the most important increase factor for savings is the time of saving. “I will give you an example. Assume that the client is 32 years old and he will continue to add to his savings until the age of 62 years. His participant's contribution is set at EUR15, and the contribution of the employer is EUR20, balanced fund: 100 percent. The total balance for the saving period is shown in the table. It should be noted that the yield itself is higher than the sum of the contributions, and it represents more than 56 percent of the whole account.”
Your contributions: 5,400 and 18.55 %
Contributions of the employer: 7,200 and 24.3 %
Yields for the saving period: 16,427.99 and 56.43 %
Credited loyalty bonus: 83.52 and 0.29 %
TOTAL: 29,111.51 and 100 %
According to the Head of the Marketing Communication Department, Jana Volnerová, for Stabilita last year was excellent in terms of the client core increase. “There has been an increase of twelve thousand new savers and we have set up more than three hundred new employer contracts, even with partners from the state-controlled enterprise area. In the long term, our results are good; we are still the best, which the employers have indisputably taken into account in the selection of the complementary pension company. Our loyalty rewards scheme has certainly played its part too.”