Understand What a Personal Account in a Mandatory Pension Fund Is

All employed citizens have their own personal account in one of the four mandatory pension funds. This account accumulates your personal pension savings: 5% of the pension contribution from your gross salary, which you pay each month. These contributions are increased by returns, or earnings, generated by the pension fund. Since the contributions of all fund members are invested in capital markets, it is important to note that returns can be either positive or negative.

The return depends on the prices of shares, bonds, and other securities and assets in which the pension company managing the pension fund invests. The money in your personal account in the mandatory pension fund is solely your capitalised savings and is not used to pay current pensions. It is your money, intended exclusively for the payment of your future pension from the second pillar.

These are the four mandatory pension funds. Choose where you will have your personal account!