In total, the return came out to 11.86% or roughly €2.9 billion. This considerable return is primarily due to the strong performance of the stock market, as stated by FDC in a press communication on Friday.
The SICAV (investment company with variable capital) fund had already secured a return of over 10% in 2023, whereas 2022 was the first year the fund’s return came out to a negative result. How much is actually stocked in the pension reserve is unknown. At the end of 2023, it stood at over €27 billion. The current estimation therefore stands at around €30 billion.
While the government is currently working on proposals for a pension reform, the good return of the compensation fund is positive news. However, this does not change the fact that, in the general pension system, expenditures are continuing to rise faster than revenues.
Expenditures are expected to exceed revenues by 2027, as more and more pensions will be paid out in the coming years, but no corresponding new jobs and contributions are being created.
At the end of 2023, the pension reserves covered the equivalent of 4.25 times the annual expenditure.
