Market of private pension operators remains modest
06/10/2015 15:15
The Washington Agreement Must Be Reactivated! 06/01 19:04
Individuals can make use of private pension schemes, beside the one
offered by the state, if they contribute while working. There are three
private pension funds currently operating in Albania. Despite the growth
of the recent years, the fund remains modest compared to the other EU
or regional countries.
Enkeleda Shehi, Director of the Financial Supervision Authority says that the main reason are costs when employers have to pay a contribution to private funds. The second reason is that some of them think there is no profit for the enterprise. Employees also are not very enthusiastic about it, mostly due to the lack of information.
The Authority came to these conclusions after a joint study with the Institution of Statistics, after observing 500 large businesses. Besides the cost and the lack of information, another reason is that there is not enough trust, since they have no information about regulatory authorities and companies that manage them, according to Shehi.
To encourage interest, the government has decided to recognize deductible spending from taxes to a certain limit. The reason why authorities want to enlarge this market, according to Shehi, is that the private scheme will complete the one ran by the government.
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