Are you sure?

Self care a must to secure safe retirement

Regardless of whether one has a state or private pension fund, additional savings are still essential in order to provide for the continued real value of pensions, a study by TakarékBank found.

The bank’s analysis points out that there are several uncertainties regarding both state and private solutions, while the examples of western European countries also go to show that safe retirement needs additional savings during active years.

“Relying on the first two pillars of the pension system is not conducive, in fact the importance of self care is all the more prevalent now,” said Endre Bereznay, head of the bank’s money and capital markets division. Accordingly, TakarékBank predicts that voluntary pension funds and pension savings accounts (NyESz) will grow in popularity.

The predictions are based on experiences from the company’s TakarékPont outlet network where demand for NyESz solutions increased 30% in 2010 on the 2009 figures. The trend is set to be augmented by the uncertainties stemming from the recent in-depth revision of the Hungarian pension system.

TakarékBank experts observed three different model portfolios in 2010. They found that in every case, NyESz accounts produced the best yields. (BBJ)