Analytics, Estonia, EU – Baltic States, Financial Services, Funds, Investments, Pensioners
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Thursday, 28.03.2024, 13:21
Estonian pension funds are the worst performers in OECD states
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.