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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 13:21

Estonian pension funds are the worst performers in OECD states

BC, Tallinn, 08.11.2013.Print version
The average yields of Estonian pension funds for the past five years are the poorest among OECD member states, LETA/Postimees Online reports.

In 2008-2012, the average nominal yield of Estonian pension funds was negative, -1.8%, thus being on the last position among OECD states, a report published by OECD this week indicates. Only Japan had also a negative yield these years, -1.1%.

 

Over the period 2008-2012, 16 OECD countries had a nominal annual rate of return higher than 2%. Turkey and Denmark came through the global instability with the best results in nominal terms, with a return equal to 11.6% and 8.5% respectively. However, after taking into account inflation, Denmark and the Netherlands are the two countries which performed the best over the period, with a real return equal to 6.1%.



 

If inflation is taken into account, the fall in Estonia is even deeper for the real yield. The average real yield of Estonian pension funds was these years -5.2%. In this regard, Ireland follows Estonia with -2.9% and Australia with -2.6%. Altogether, 18 of the OECD states had a negative real yield and 12 had positive real yield.






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