Investment Summit - facing the future of pension savings with courage

The first Investment Summit is now behind us, where we discussed one of the most important topics of our time - pensions and the future of a dignified life after work.

The conference was opened by keynote speaker Peter Frankl, Časnik Finance. In his inspiring speech, he pointed out that people actually retire three times:

• first at the age of 58, when you receive a calculation of your expected pension from the Pension and Disability Insurance Institute (ZPIZ),
• second when you actually retire,
• and third when you can no longer take care of yourself.

His symbolic reminder that "Bismarck died in 1898, and now his pension model is dying" forces us to reflect: a system that was created in the 19th century can no longer cope with the realities of the 21st century. The future will also belong to us - with more boldness, adjustments, and changes, it will be better.

Žiga Vižintin, Pokojninska družba A, emphasized that the second pillar is a good first step. Slovenia has one of the highest tax breaks in the OECD and stable, competitive returns, which confirms that additional pension savings are an investment in one's own future, because relying on public pensions amid markedly negative demographic trends may mean a drastic reduction in living standards.

Dino Šterpin, Triglav Pokojninska družba, showed that Slovenian pension savings are often caught up in flawed logic. More than 80% of funds are held in debt securities and cash, which is a missed opportunity. As he vividly put it: "When someone assures you that you will not lose anything, they also prevent you from gaining anything significant."

The round table, moderated by Primož Cencelj, Modra zavarovalnica, was followed by clear thoughts and initiatives. Among others, Ivana Gažič, Zagreb Stock Exchange, presented the positive experiences in Croatia, where the second pillar for savers' savings is also an important source of capital for the development of the local economy and capital market. Blaž Brodnjak, NLB, told it like it is. It is high time for the state to relieve the burden on the economy and direct these savings towards the future - into the second pillar. When Slovenian pension funds grow like those in Croatia, they will become a serious player in the local capital market. Janez Kranjc, Prva Group, points out that funds must work for the benefit of investors, but without neglecting the fact that they also help the local economy - that is, they also invest in the environment from which they grow. Robert Leskovar, Generali, emphasizes that the automatic enrollment of employees, which is being considered in Germany, would also make sense for Slovenia, as it would increase profitability and participation in the second pension pillar.  Andrej Plos, Sava Pokojninska družba, emphasized that as a manager he supports mandatory inclusion in the second pillar, but as a citizen he advocates voluntary participation. He also pointed out that the main obstacles to greater pension savings are financial illiteracy and short-term thinking among employees, who prefer immediate income to long-term security.

The event demonstrated that Slovenia needs more courage. It needs to adopt urgently needed reforms that will benefit savings, the economy, and the capital market. The future will come, but it is up to us whether it will simply arrive or whether we will shape it to our advantage.

If you missed the event, you can watch it at the following link: https://youtu.be/nK1U9zCoqPQ