Your savings will be much less than you thought



Austrian family-owned company that carries on brokerage activities. The cooperation with Good Finance Holding was signed on 28 March.

Dr. András Farkas, a pension expert, talked about why pension insurance is “compulsory”. He said that we are the “sandwich generation” who have to support their parents and their children. The retirement age is steadily rising and the state pension is decreasing, not to mention we are spending more and more retirement, as life expectancy is constantly increasing.

In addition, parental control is tightening in Hungary, which means that a parent can sue his or her child if he or she is not retired when he or she retires. If the parent goes to a residential institution, the institution can also sue the child to finance the treatment of his parents.

The real value of many savings

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Institutional director of Concorde Fund Management, believes that the real value of many savings in the world will be significantly lower than those who put their money away. You see, the next 20 years will be completely different from the previous 20 years in terms of investment.

Low nominal interest rate environment pushed up riskier asset prices. However, further reductions in interest rates are unsustainable, as the current situation is counterproductive: a low interest rate environment is also damaging to savers’ balances. The next 20 years will mark a period that investors have not seen in a very long time: they will be rowing “against the wind” as inflation may be at an unprecedented level while interest rates are still relatively low.

China still deserves attention, according to the expert

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The country’s debt has grown at a much higher rate than the economy, and is now believed to have a credit bubble in the world’s second largest economy. A potential shock effect from the region could have a greater impact on the global economy than the emerging Asian stock market crash of 1997, as the emerging economy now represents a much larger slice of the global economy.

Telegdi believes that the Central European region can now be a good investment opportunity, with much better growth opportunities in terms of both consumption and exports than in developed Europe, not to mention that it is now one of the cheapest regions in the world. in the whole world. The Turkish and Russian markets are not worth hitting with this region, although it is a well-established practice among some large investors and fund managers.

Presented three research firm projects

Presented three research firm projects

  • Voluntary pension fund contributions will be reduced by 13-20% due to higher cafeteria tax rates, as employer contributions will be significantly eroded. The research institute came up with the solution that the state would have to provide 15% extra subsidy with a 20% tax credit.
  • They also pointed out that bank tax was reduced in 2016, while investment tax was not reduced, which allowed foreign service providers to conquer the market, reducing the tax rate to 2.8% from the current 5.6% – ) and recommend the introduction of a tax credit as a reward for participating in new stock exchanges.
  • The research institute forecasts domestic GDP growth of 3.6% for 2017 and 3.4% for 2018. It is believed that this will be caused primarily by increased consumption.

András Juhos, director of personal insurance at Insurance, said that 26 of the 28 EU countries have recently joined the pension system. He explained the indexing that is occurring with more and more savings life insurance products to help the client accumulate a usable amount of pension. According to him, if we indexed all of our contracts, we would be able to reach the savings level in 47 years as in Austria.