Category: Research and statistics
Results of the activity on supplementary pension insurance for the first half of 2023
The Social Security Supervision Department of the Financial Supervision Commission announced the results of the activity on supplementary pension insurance for the first half of 2023. The information is summarized on the basis of the reports for supervisory purposes submitted by the pension insurance companies to the Financial Supervision Commission. Data on the distribution of insured persons by gender and age in pension funds as of 30.06.2023 are also published.
The total number of insured persons in the four types of pension funds as of 30.06.2023 is 4 965 310 people, increasing by 42 056 people or 0.85 per cent compared to 31.06.2022 and by 77 649 or 1.59 per cent compared to 30.06.2022.
The largest share of insured persons is concentrated in universal pension funds – 80.29%. Persons insured in voluntary and occupational pension funds occupy a share of 12.97 per cent and 6.54 per cent, respectively. The smallest share of insured in voluntary pension funds under occupational schemes is 0.20%.
As of 30.06.2023, the net assets of pension funds are worth 21 079 926 thousand. Lv. Compared to 31.12.2022, the net assets of pension funds increased by 9.70%, and compared to 30.06.2022 by 14.08%.
The rate of growth of net assets differs by type of funds. The net assets of universal pension funds grew the fastest, which reported an increase of 15.10% compared to 30.06.2022, followed by occupational and voluntary pension funds with growth for the same period of 9.79% and 6.07%, respectively. The reported growth of voluntary pension funds under occupational schemes for the period is 4.26%.
The gross receipts from social security contributions to pension funds in the first half of 2023 are a total of 1 251 054 thousand. Lv. and increased by 16.15% compared to the first half of 2022. The proceeds from social security contributions in the UPF registered an increase of 19.73%, and in the PPF 15.59%. A decrease in the receipts from social security contributions is observed in voluntary pension funds and voluntary pension funds under occupational schemes.
The persons receiving payments from the funds for making payments as of 30.06.2023 are 16 096, of which 1 695 pensioners and 14 401 persons with deferred payments. These are persons who have been insured in universal pension funds and have reached retirement age. In the first half of 2023, 1 833 thousand were paid from the payment funds. Lv. for pensions, 29 354 thousand. Lv. for deferred payment of insured persons and 114 thousand. Lv. of pensioners’ heirs and persons who have received deferred payments. The average amount of pensions paid in the first half of 2023 is BGN 225.12 and the average amount of the deferred payment is BGN 399.08. Compared to the first half of 2022, the average amount of pensions paid increased by BGN 24.91, or by 12.44%, and the average amount of deferred payment increased by BGN 84.21, or by 26.74%.
Detailed information about the results of the activity on supplementary pension insurance for the first half of 2023, as well as about the insured persons and the accumulated funds in the pension funds as of 30.06.2023 by gender and age can be found in section: Social security activity / Statistics / Statistics and analyses.
Results of operations on supplementary pension insurance for the first quarter of 2023
The Social Security Supervision Department of the FSC announced the results of the activity on supplementary pension insurance for the first quarter of 2023. The information is summarized on the basis of the reports for supervisory purposes submitted by the pension insurance companies to the Financial Supervision Commission. Data on the distribution of insured persons by gender and age in pension funds as of 31.03.2023 are also published.
The total number of insured persons in the four types of pension funds as of 31.03.2023 is 4 952 281 people, increasing by 1.55% compared to 31.03.2022.
As of 31.03.2023 the net assets of the pension funds are worth 20 205 288 thousand. Lv. Compared to 31.03.2022, the net assets of pension funds increased by 5.07%.
Persons receiving payments from the funds for making payments as of 31.03.2023 14 194, of which 1 392 pensioners and 12 802 persons with deferred payments. These are persons who have been insured in universal pension funds and have reached retirement age. In the first quarter of 2023, 829 thousand were paid from the payment funds. Lv. for pensions, 13 676 thousand. Lv. for deferred payment of insured persons and 58 thousand. Lv. of heirs of persons who have received deferred payments.
The total revenues of pension insurance companies for the first quarter of 2023 amounted to 74,180 thousand. Lv. The net financial result of the companies for the period amounts to 27 871 thousand. Lv.
Detailed information about the results of the activity on supplementary pension insurance for the first quarter of 2023, as well as about the insured persons and the accumulated funds in the pension funds as of 31.03.2023 by gender and age can be found in section: Social security activity / Statistics / Statistics and analyses.
PensionsEurope Report 2022 – Trends and developments in funded pensions
PensionsEurope report 2022 – Trends and developments in funded pensions
Key findings:
*Assets of euro area pension funds continued growing more than their liabilities until the end of 2021, increasing their aggregate funding ratio.
*Through recent increase in interestrates, liabilities of pension funds have decreased more than their assets.
*Passive investment funds is a growing trend among pension funds.
*Direct impact of inflation on pension funds depends on countries and on pensionss chemes.
The Number of the Insured Persons in the Supplementary Pension Insurance Funds Reached 4.849 Million as of 31-st of December, 2021, Net Assets BGN 19.557 Billion.
The Insurance Supervision Department of the FCS announced the preliminary results of the supplementary pension insurance activity as of December 31st, 2021. The information was obtained on the basis of reports, submitted by the pension insurance companies of the Financial Supervision Commission. The data on the distribution of the insured persons by sex and age in the supplementary pension insurance funds as of December 31st, 2021 have also been published.
The total number of the insured persons in the four types of funds for supplementary pension insurance as of 31st of December, 2021 is 4 849 754 persons, increased compared to September 30th, 2021 by 0.64 per cent.
As of December 31st, 2021, net assets amounting to BGN 19,557,121 thousand have been accumulated in the supplementary pension insurance funds. Compared to the end of 2020 the net assets of the pension insurance funds increase by 13,08 per cent. The total income of the pension insurance companies for 2021 amount to 311,101 thousand leva. By the end of 2021, 7 lifelong pension funds (FIPP) and 9 deferred payment funds (DPF) have been established. During the period September 1st, 2021 – December 31st, 2021 total 270 pension contracts are concluded for the payment of the supplementary lifetime old-age pension and 1863 contracts for deferred payment of funds with the first persons, insured in the universal pension funds and reaching retirement age. In order to make payments to these persons during the period September 1st, 2021 – December 31st, 2021, BGN 4,491 thousand were transferred from their individual accounts to the FIPP and BGN 8,625 thousand to the DPF. During the same period, BGN 52,000 was paid for pensions by the FIPP, and BGN 596,000 was paid by the DPF for deferred payments to insured persons and BGN 8,000 once to heirs of insured persons who received deferred payments.
Funds in the amount of BGN 58,000 were paid once from the universal pension funds to insured persons who have reached retirement age and had very small pension savings.
The information about the preliminary results of the pension funds and the funds for making payments for 2021 as well as for the insured persons and the accumulated amounts in the pension funds as of December 31st, 2021 by sex and age could be found in the section: Markets / Insurance market/ here.
The Insurance Supervision Department of the FCS announced the preliminary results of the supplementary pension insurance activity as of December 31st, 2021. The information was obtained on the basis of reports, submitted by the pension insurance companies of the Financial Supervision Commission. The data on the distribution of the insured persons by sex and age in the supplementary pension insurance funds as of December 31st, 2021 have also been published.
The total number of the insured persons in the four types of funds for supplementary pension insurance as of 31st of December, 2021 is 4 849 754 persons, increased compared to September 30th, 2021 by 0.64 per cent.
As of December 31st, 2021, net assets amounting to BGN 19,557,121 thousand have been accumulated in the supplementary pension insurance funds. Compared to the end of 2020 the net assets of the pension insurance funds increase by 13,08 per cent. The total income of the pension insurance companies for 2021 amount to 311,101 thousand leva. By the end of 2021, 7 lifelong pension funds (FIPP) and 9 deferred payment funds (DPF) have been established. During the period September 1st, 2021 – December 31st, 2021 total 270 pension contracts are concluded for the payment of the supplementary lifetime old-age pension and 1863 contracts for deferred payment of funds with the first persons, insured in the universal pension funds and reaching retirement age. In order to make payments to these persons during the period September 1st, 2021 – December 31st, 2021, BGN 4,491 thousand were transferred from their individual accounts to the FIPP and BGN 8,625 thousand to the DPF. During the same period, BGN 52,000 was paid for pensions by the FIPP, and BGN 596,000 was paid by the DPF for deferred payments to insured persons and BGN 8,000 once to heirs of insured persons who received deferred payments.
Funds in the amount of BGN 58,000 were paid once from the universal pension funds to insured persons who have reached retirement age and had very small pension savings.
The information about the preliminary results of the pension funds and the funds for making payments for 2021 as well as for the insured persons and the accumulated amounts in the pension funds as of December 31st, 2021 by sex and age could be found in the section: Markets / Insurance market/ here.
Results of Private Pension Funds for 2021 – Main Indicators
The net assets of the Bulgarian private pension funds increased by 3.8% QoQ (+BGN 724m) and by 13.1% YoY (+BGN 2.3bn) to BGN 19.6bn as of end-2021, according to data released by the Financial Supervision Commission. The contributions during the quarter came to record high of BGN 536m while the total number of insured individuals in all 4 types of pension funds was 4.8m at end-2021, +0.5% QoQ and +0.6% YoY.
The amount of the investments grew by BGN 935m to BGN 17.7bn over the quarter while the uninvested cash declined by BGN 339m to BGN 1.7bn or 8.8% of the net assets. The investments in government bonds increased by BGN 637m after 2 consecutive quarters of declines and reached all-time high of BGN 9.2bn or 47.2% of the net assets while corporate bonds were down by BGN 114m to 7.9% of net assets. The growth of equity investments came to BGN 417m, reaching BGN 6.6bn and accounting for 34% of the net assets.
2021 revenue of the pension insurance companies rose 43.1% on annual basis to BGN 311.1m with income from fees and charges increasing 17.6% YoY. The net income improved by 30.2% YoY to BGN 75.2m.
The annual weighted-average nominal rate of return for the last 24 months period as of end-2021 came to 2.94% for UPF (+2.39% at end-September), +3.29% for PPF (+2.64% at end-September) and +4.34% for VPF (+3.46% at end-September).
In January 2022, the Financial Supervision Commission (FSC) Published the Results for the Reported Two-year Return of the SPI funds for the Period 31.12.2019 – 31.12.2021.
The FSC data at the end of December 2021 show higher levels of the achieved two-year return on funds, namely the weighted average return for two years, which for UPF reaches 2.94%, for PPF 3.29% and for VPF 4.34%, compared to the data for the previous quarter of 2021. By the end of September 2021 these indicators had reached the following values for the period 30.09.2019 – 30.09.2021: weighted average return for the two-year period: for UPF 2.39%, for PPF 2.64% and for VPF 3.46%.
The steady trend of good performance, measured by this return on funds in 2021, continues after the outbreak of the COVID pandemic in March 2020 and the emergency measures taken by central banks.
Over the past period, the investment strategies of pension companies have focused on making measured and timely investment decisions in view of rising risks, high dynamics of international capital markets and prices of financial instruments taking into account the uneven economic recovery of the world economy.
More information of the reported two-year yield for the period December 2019 – December 2021 can be found of the following section of FSC website:
https://www.fsc.bg/?page_id=22048