The number of contracts for a state-sponsored retirement provision fell in 2014 to 1 590 723, which represents a decrease of 2.8% compared with 2013. The volume of premiums earned in 2014 dropped by 1.25%, and amounted to € 1.03 billion as per the end of the year. For assets under management an increase of 4.3% was posted to total € 8.1 billion (2013: +9.8% and € 7.8 billion). The volume-weighted overall performance in the state-sponsored retirement provision segment amounted to +2.9%, thus exceeding the +1.13% recorded in 2013. These figures were disclosed in “The Market for State-Sponsored Retirement Provision”, an annual study published today by the Austrian Financial Market Authority (FMA).
95.5% of all contracts valid as at the end of 2014 were insurance products, with this figure increasing slightly by 1.3% compared with the previous year. Products from investment fund management companies accounted for a market share of 4.5%. There was a decline from the previous year in both the portfolios of insurance contracts (-1.36% to 1 519 926) and those of investment fund management companies (-25.5% to 70 797).
The various state-sponsored retirement provision products showed highly varying performance in 2014: insurance undertakings posted a performance rate of +3.16%, while investment fund management companies achieved only +0.39%. The great difference is attributed to the fact that it was mainly investment fund management companies that were affected by stop losses. An investment is stopped out when the equity share that can be recognised in income is below one per cent. While these products are thus secured against further downward movements, they cannot participate in upward movements either. In 2014 a total of 97 302 contracts, or 6.1% of all valid contracts, were reported as having been stopped out.
The maximum state-sponsored deposit in 2014 was € 2 495.12 (2013: € 2 445.50) and the maximum state premium, at 4.25%, came to € 106.04 (2013: € 103.90). For 2015 the maximum state premium will be € 108.85.
According to the law, contracts for state-sponsored retirement provision must run for a minimum term of ten years. Investment fund management companies currently hold only ten-year contracts in their portfolios, while insurance undertakings also offer contracts with longer terms. At the end of 2014 some two thirds of the contracts had terms of 25 years or more. Contracts with a term of more than 45 years accounted for a market share of almost 25%. Only 8.4% of all contracts run for 10 to 14 years.
The complete study is available on the FMA website (in German) at https://www.fma.gv.at/publikationen/studie-praemienbeguenstigte-zukunftsvorsorge/
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516