VOLUNTARY PENSION FUNDS IN THE REPUBLIC OF SERBIA - COVID AND POST COVID PERIOD

Maja Dimić

doi:10.35120/sciencej0303133d

Authors

Maja Dimić Faculty for business studies and law, University Union Nikola Tesla

DOI:

https://doi.org/10.35120/sciencej0303133d

Keywords:

voluntary pension funds, net asset, the asset structure, currency structure of asset, Republic of Serbia

Abstract

The topic of this paper is the analysis of voluntary pension funds in the Republic of Serbia in the period 2019-2023: the role, performance, and structural characteristics. Voluntary pension funds have emerged as a significant component of retirement planning across the globe. Unlike mandatory pension schemes, which are compulsory and often state-managed, voluntary pension funds offer individuals the opportunity to augment their retirement savings beyond what is provided by state or employer-sponsored plans. Voluntary pension funds represent a contractual type of financial institution, with a significant share of their capital derived from client contributions, which define the contractual relationship between the fund and its clients. Unlike some other types of funds, such as investment funds, pension funds benefit from regular, monthly contributions or payments, which provide a steady influx of free capital for investment in the financial market.

Voluntary pension funds in Serbia represent a significant segment of the country's financial market, providing a supplementary avenue for retirement savings beyond mandatory pension schemes. The analysis reveals a general upward trend in net asset value, although a notable decline of 4,25% occurred in 2022 due to increased withdrawals and negative investment returns. Voluntary pension funds are predominantly invested in domestic government debt securities, with a significant portion also allocated to equities and term deposits. Market data indicates that Dunav Voluntary Pension Fund has consistently led the market in terms of net asset value, with other funds such as Generali Basic, DDOR Garant Ekvilibrio, and Raiffeisen Future following. Most assets are held in the domestic currency, while a smaller proportion is in foreign currencies, particularly euros. The findings highlight the importance of voluntary pension funds in providing financial security for retirees and underscore the need for ongoing evaluation and adjustment in response to market conditions and demographic trends.

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