At the end of the third quarter of 2024, Serbia’s voluntary pension funds reported net assets totaling 59.8 billion dinars, marking a 4.2% increase compared to the previous quarter. During this period, total net payments reached 1.2 billion dinars, according to the latest report from the National Bank of Serbia.
Members who met the necessary conditions withdrew 632.1 million dinars, while the yield from the investment of the funds’ assets amounted to 1.9 billion dinars. The investment structure of the funds has seen slight changes, with government bonds continuing to hold the largest share, comprising 62.7% of total assets. Custody accounts accounted for 17.3%, shares of domestic legal entities made up 11.2%, time deposits with banks stood at 4.2%, and investments abroad represented 2.9% of the total assets.
Over 224,000 beneficiaries contributing to pension funds
Voluntary pension insurance in Serbia now has 224,376 beneficiaries, which is an increase of 924 people compared to the previous quarter. This represents 9.7% of all employed individuals in Serbia. The average accumulated funds in the accounts of members (who have contributed at least once) reached 297,600 dinars by the end of the third quarter of 2024. The amount in each account varies based on the contributions made, returns earned by the funds, fees, and the duration of the accumulation period. As the contributions and accumulation periods grow, the average balance in individual accounts increases accordingly.
User demographics and trends
The average age of voluntary pension fund users is 48 years, with the majority (62%) falling between the ages of 40 and 60. About 32.3% of users are over the age of 53, while 19.2% are older than 58. As of the end of September 2024, 20.2% of users (45,343 individuals) were members of two or more pension funds. The gender distribution remains largely unchanged, with 57% of users being male.
Increase in contributions and payments
In the third quarter of 2024, net payments into voluntary pension funds amounted to 1.2 billion dinars. Of this, 40.3% were individual contributions, 37.2% came from employer contributions on behalf of employees, and 22.5% were from pension plans. The increase in individual payments, as well as employer contributions, reflects a growing trend in pension savings. Both employees and employers benefit from tax exemptions on voluntary pension contributions, up to a monthly maximum of 8,101 dinars per employee.
The total amount disbursed to members who met the necessary conditions for withdrawals during the third quarter was 632.1 million dinars. Of this total, 79% were one-time payments, while 21% were programmed disbursements.
Pension fund market overview
By the end of September 2024, there were four management companies operating in the voluntary pension fund market, overseeing seven different funds. Additionally, there were two custodian banks, five intermediary banks, and one intermediary insurance company involved in the sector.
