LITHUANIA's pension funds paid out EUR 14.3 mln in 2014

13 February 2015 —
Payouts to participants of pension funds are increasing every year in Lithuania. Participants of pension funds, or their relatives who inherited the rights to payouts, were paid EUR 14.3 million in 2014, reports LETA/ELTA.

Since the launch of their activities in 2004, pension fund companies distributed a total of EUR 54.7 million to 34,600 customers.

6,700 participants of pension funds received payouts in 2014, EUR 2,149 on average, by around EUR 463 more than in 2013. In 2014, the average payout to a retiring person was EUR 2,459, while the average payout to a relative in case of the death of a pension fund participant was EUR 1,525.

 "Last year the average payouts were increasing rapidly. This was determined by good return on investment achieved by pension funds and by growing contributions. By the way, in 2014 participants of pension funds started transfers to their accounts as well, this granted additional stability and confidence in the system. From now on both the accumulated amounts and payouts will grow at a higher pace," said Arturas Baksinskas, President of Lithuanian Life Insurance Companies' Association.

Voluntary fees by participants of second pillar pension funds totalled EUR 22.74 million in 2014. During the pension scheme system reform in 2013, a total of 352,500 participants agreed to pay voluntary contributions and receive additional state payment. 56,500 employed people joined pension funds in 2013.

Furthermore, in recent years assets invested by pension funds grew rapidly. According to the Bank of Lithuania, in 2014 funds accumulated by all second pillar pension fund participants earned 7.8% on average. The average annual pension fund return was 5.3% since the launch of the system in 2004, even though the annual average inflation throughout the same period was just 3.5%.

Currently around 1.1 million employed Lithuanians participate in second pillar pension funds. Assets accumulated by participants at the beginning of 2015 stood at EUR 1.85 billion, i.e. by approximately EUR 290 million more than transferred by the state or participants themselves.

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LITHUANIA's pension funds paid out EUR 14.3 mln in 2014
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