Economist: People withdraw their pension all at once. Gradually, however, I take advantage

Economist: People withdraw their pension all at once. Gradually, however, I take advantage
Economist: People withdraw their pension all at once. Gradually, however, I take advantage

Financial markets are losing this year. Do you think it is a good time to start a pension plan?
Penzijn spoen is a long-term product with regular investments. Its foundation is not influenced by how fast the markets are. However, when the markets are down, it is generally an ideal time to invest.

Will the pension union offer the bank and the investment company if their offer matches? How should a person ideally choose a company for a pension plan?
There are now nine pension companies on the market. The supplemental pension product is regulated by the state, and pension companies do not have much room to diversify. But the client asks me about all the company’s pensions and compares whether any of them gives him something extra.

The choice of investment strategy is also due. How to choose the first one?
The most important parameter is the time until retirement age. If it is not a matter of ten years, then without a dynamic strategy, there is no way to beat long-term inflation on the pension. The strategy client does not have to choose sm. After completing the investment questionnaire, he will be advised which strategy to choose. The selection parameters include the knowledge profile of the client, the relationship to risk and, in particular, the changing length of the relationship, more precise investment.

You changed the funds of Rentea. Have you adjusted the uncertain time of day in your portfolio? Have you changed your investment approach?
At the Rentea Equity Fund, we will focus on the so-called defensive sectors, which should have better performance only in the period when the political climate deteriorates. These are mainly the sectors of consumer goods and energy companies. As a result, the fund is as relevant as any investment strategist, exposed to the stock markets. This means that it is less sensitive to uneven fluctuations. And this will help him during the current turbulences, when he is overvalued compared to competing pension funds.

Lucie Jurnkov

  • She graduated from the Faculty of Business Economics at the Mendel University in Brno.
  • She worked at Allianz pojiovni and Allianz pension company.
  • In August 2019, she joined the Partners group as a project manager for the pension project of the company Rentea.
  • She has been a member of the board of directors and product editor at the Rentea pension company since she received her license from the Czech National Bank (November 25, 2020).

And conservative bond funds?
As for the Dluhopisova astnic fund, we have only changed the strategy there recently. The reason was the new forecast of the development of inflation and the economy from the Czech National Bank. The central bank is now focusing on higher inflation with a horizon of around two years, and until then they are obviously not afraid of inflation.

This had an impact on the prices of government bonds, with them we currently fell according to them. Therefore, until the next months, we will focus on anti-inflation bonds and bonds with a variable purchase. The strategy, which was based on internal analyzes of the development of the koruna and inflation, has been very successful so far, and Rentea Dluhopisov has been evaluated among other conservative municipal funds since its inception.

You have been on the market for a year, how should you have been evaluated for that losk year and with what evaluation potte for the year?
Meziron, and therefore since its inception, the performance of the Rentea equity fund is -0.7 percent. This is a very good result and shows the quality of the fund’s active nature, when the fund was able to capture the growth of the stock market in the second half of the year immediately after its establishment, and this year it managed to slow down the global fall in share prices.

And the bond fund?
As for the bond fund, it didn’t have a lot to do with it, because it was born just at the time when the Czech National Bank started to raise the basic annual rate and thereby push bond prices down. However, due to the cautious approach to inflation, the fund managed to eliminate the correction of the bond market, and in the first half of the year the client’s assets even appreciated by +1.0 percent. Which is completely apart from the situation.

Pension funds with a similar conservative, and thus bond strategy, will perform on average around -5.0 percent this year. The N fund from the foundation, i.e. in 12 months, is by 1.2 percent in. On this horizon, we cannot boast of the positive performance of another pension bond fund. By the end of the year, we expect to appreciate around five percent. And it will probably be like that for several more years on average, thanks to the fact that the NB base rate is now equal to seven percent.

The Association of Pension Funds warned people not to use their pensions due to inflation and not to put their pensions on the bank, which, thanks to the interest rates, will not be available in the past. are you too?
Since we are one of only Associations of pension companies, we know about the activities of APS. It is so. There is no reason to panic, it is necessary to think about the fact that no one will come to your rescue, even if it is the employer’s old age. When someone ends this product, they have to return the packaging. A pension contract is really a long-term contract, and the collapse of the financial market should not be a reason to terminate the contract. This is not a short-term investment.

According to you, two people answering the sums for the pension plan?
The average in the package is 795 crowns per month. For comparison, the optimal amount for the maximum retirement age would be 1,000 crowns, and for the maximum tax deduction, the optimal amount is 3,000 crowns. This means that the current average in the PSP will unfortunately not be enough to secure the position.

And what if they can’t afford more dt, what do you advise them?
I definitely wouldn’t recommend that anyone save for a pension and then not cover their basic needs. In such cases, I understand that the hunter is too concerned with dealing with the current situation and does not have that much space for preparing the future.

However, I still think that a pension plan should be one of the first financial products that a hunter should not forget about. I have to roll it up somewhere. I recommend that you set a maximum amount, and when I find out that it is not working for me, I can cut the payment at any time, or stop the payment in full if I fall into some kind of situation. This is how it will be paid for every 1,000 crowns deferred, I will receive 230 crowns, and in addition, the pension will be valued.

Retirement allowance: annual contribution and tax discount
Actual monthly payment in K 100 300 500 800 1000 1500 2000 3000
Sttn massn pspvek in K 0 90 130 190 230 230 230 230
Ron dispute on danch in K 0 0 0 0 0 900 1800 3600
Total ron entrances in K 0 1080 1560 2280 2760 3660 4560 6360

In any case, I recommend always having a supplementary pension arranged, if the employer pays for it. I also know people who do not have the product agreed upon, even when the employer offers this benefit.

How do you stand as an employer in this regard, writing to people about their pension plans?
I have 70 percent of contracts where there is no single employer’s contribution. The employer can also apply for tax benefits if the employee pays. Not every employer has heard of it. It is connected with the administrative work of the university, otherwise I don’t know why the employer does not offer this benefit. There are also cases when the client may not find out about the possibility of this benefit and then not use it. I recommend that you look into it, it is a code not to use this essential benefit.

What experience do you have with the employer’s willingness to contribute to the pension plan of its employees in your funds?
At the time of the arrest, we had a problem as a new pension company in convincing employers that we are the same pension company as everyone else and that if you subscribe to a contract with another pension company, then they should also sign up with us. By law, employers cannot influence the choice of company pensions. After a year of operation, we will not encounter this problem.

Unlike other pension funds, you distribute the profit back to your clients, how does it actually work? And hear about this offer to the public?
Yes, the people on this benefit sly. After all, we were the first pension company to bring new product features to the pension system, and we are glad that another pension company inspired it.

So how does it work?
Every five years, we give our clients a loyalty bonus of at least one percent of the average contract balance in the given period. And if the fund will be evaluated by you, not our duties, the bonus should go to you.

What do you recommend to have your pension paid in installments or all at once?
The decision is gradual, because the funds should eventually generate a permanent income and should not be used for a one-time investment.

And what’s wrong with the people in Esk, do they take all their pensions at once, let them be paid in full, or do you invest more?
Now urit sings on all means at once. It is caused by the fact that in the last means it is not high enough for the amount of muscle tissue to be exhausted. It is necessary to have a certain volume of means, from which the meat stick will be sweated out, which will really mean that it is ready for retirement. The result is that the pension still does not reach the goal for which it is intended. In other words, work towards a healthy retirement. The five-step approach is advantageous in that the employer’s contribution is not subject to tax and if the payment is for no more than ten years, then no income is taxed.

Do you have any tips on what would be worth changing in the set up pension funds to make them more attractive to people?
I think there are more minor rights that could be specified or better specified in the law. But if I were to open one of these topics, I would like to consider the possibility of the employer’s obligation to write about this product. I think this step would make the product more attractive. This could be linked to a vt favorable to the employer. You, the client, is something that the clients have worked so hard for, but even now, the motivation of the client is not as good as it could be.

And what about the fact that, for example, with the old pension scheme, if it goes to the old woman and there is no registered person in it, then it takes back the old pension. Is it according to vs fr?
On the one hand, I understand what the original death was. Sometimes the old man stays away for years, and during that time only the funds are in the company’s pension, he doesn’t get married. But in view of the fact that this rule does not apply to her in the new supplementary pension scheme, so even the petitioner came to the conclusion that it is not fr.

On the other hand, when concluding a contract, the client should be informed of this fact, and it is his choice whether to choose an authorized person or not. I definitely recommend that person in the mt contract. It can be changed at any time, but it is definitely better to have the contract written like this.

The article is in Czech

Tags: Economist People withdraw pension Gradually advantage

PREV In the backyard or at the moe? What are my dreams about retirement and how to finance it
NEXT The viral story of an electric car owner. Battery replacement cost 730,000