Comparison of returns on pension funds vs. severance pay: analysis over 10 and 15 years
Negotiated pension funds outperform severance pay over the last 10 and 15 years. Equity lines excel, guaranteed lines disappoint. Details on Plus24.
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Key points
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Over the time horizon of the last 10 years, the equity lines of all the negotiated pension funds offered a superior return (on average +43.4%) compared to the revaluation of the severance pay (+27.3%) over the same time period. The best were the Expansion sub-funds of Fondosanità and Dinamico of Alifond (+52%), while the 'worst' equity sub-fund was Dinamico of Fondenergia (+35%). Less flattering were the results of the balanced lines (+29.6% on average), while the bond (+20.3%) and guaranteed (+6.8%) lines were well below the Tfr bar.
A period fi 15 years
.Extending the observation over a 15-year period, the differences are more pronounced with equity lines averaging a return of 110.8%, balanced lines 77.7%, bond lines 56.9% and guaranteed lines 20.1%, well below the latter's 42.5% revaluation of the severance pay.
Guaranteed lines
.A resounding rejection, therefore, for the guaranteed lines that have so far accepted the severance pay of workers joining the supplementary pension scheme with silent consent. A more in-depth analysis of returns, costs, size and other levers to make the second pension pillar more efficient will be published on Saturday in Plus24 on newsstands with Il Sole 24 Ore.
