Why nobody told me I should choose a retirement fund?
Since the choice is personal, the employer should not guide you. Universal and professional fund shall be elected within three months after starting his first job contract of employment. If this does not happen, you will be officially distributed in any of the 9 companies. Even a change of employer, the pension fund will remain the same. Important to know – in accounting you can not tell where you are insured, you have the right to choose a fund or you move.
And can I change the fund?
Yes, if passed two years after the original selection / distribution of compulsory schemes, and one year for voluntary. After this period change can be made once a year. It is done by going to the newly elected company and submit an application form. The fee for replacement is 20 lev, which are paid separately and are not deducted from your account. Change Fund can happen only as you wish, no one can force you, and this is information that you can share if you want. Infringements signals are fed to the FSC.
Money in my account is low. Why?
One option is to have been insured for a very low amount. The second – the pension fund have a low yield. It is possible that the employer had not imported amounts on time, or because of problems in the NRA they are delayed. The latter, however, may not happen for several weeks to months and hardly affects your entire account. If you think losing money and missing payments, call the company and ask retirement. When you need to submit a signal to the NRA.
What will give me the amended provision?
Universal Fund gives a second pension, over that of the state system. Professional provides payment for early retirement. The voluntary will bring the third pension. For each amount you will receive depends on three things – insurance income, respectively contributions (in voluntary them define themselves), income from investments of the fund and the fees that pension company collected. In most fees are the same.
Can I withdraw money early?
By mandatory funds – not. Money you can get only when you reach retirement age. Voluntarily can withdraw money at any time, but if you download installment – have to pay the retained 10% tax. If you withdraw only yield tax due.
Your funds are not simply stored long-term in your personal account (individual account). They, along with other accumulated funds provided in the same fund, managed by the pension insurance company by investing in accordance with statutory regulations in different assets (securities, bank deposits, real estate) to ensure good long-term profitability. The income generated from the investment of the funds allocated to the individual accounts of the insured persons. This is the so-called principle of equity security.
In the Social Security Code spell out detailed rules for investment funds and investment restrictions. In terms of universal funds law provided the investments are more conservative in nature in comparison with those of voluntary funds. For example, a small portion of the funds could be invested in risky financial instruments such as shares.
Prudent investment adds to the assets of the insured, but their constant growth is not guaranteed. Achieved profitability depends to a high degree of specific market conditions. Although there are mechanisms in place to protect your money by determining the minimum rate of return, they can not guarantee a positive return and preserving the full amount of funds deposited. While economic theory and practice show that the long-term nature of investing these funds overcome these temporary dips.