The assets of the private pension funds has retained a fast expansion rate of 41% year-over-year to reach BGN1.1 billion (€569 million) at the end of 2005, according to preliminary data of the non-bank financial supervision commission. The market of individually capitalized pension savings has reached 2.7% of GDP and 3.4% of the bank assets.
The quick rate of accumulating new pension savings is expected to continue this year as the share of mandatory contributions to the universal (second-pillar) funds is increased to 4% of the gross insurance income this year from 3% last year. In addition, the parliament has liberalized the asset management rules, especially for the voluntary (third-pillar) savings, which is expected to raise the share of investments in corporate shares and to raise the annual return rates.
