Iracionalita státní podpory transformovaných fondů ve světle jejich z(ne)hodnocení: Využití opt-in strategie pro vyšší výnosy s nižším rizikem v DPS
The irrationality of providing state support for transformed funds in the light of their financial (non) appreciation: the use of an opt-in strategy for higher returns with lower risks in the form of a notional defined contribution (NDC) system

Summary/Abstract: Supplementary pension savings, in which over three million contributors participate, continue to include so-called transformed funds, the appreciation in the value of which does not even cover inflation. With the help of an international comparison, the article highlights the irrationality of providing state support for transformed funds when they do not attain the level of appreciation of that of a potential notional defined contribution (NDC) system even without the state support component. Furthermore, the study identifies the preconditions for the functional, advantageous and, at the same time, low-risk settings of such a pension system funding pillar in the Czech Republic employing an opt-in investment strategy. Following such assumptions, calculations are made based on predictions determined via the comparison of more than 50 funding systems from various countries. The calculations conclude that the setting of an opt-in strategy with dynamic investment up to 20 years before retirement, followed by the very gradual transfer to less risky investment funds, maximises the lower risk-return ratio and the yield. Hence, a third pillar pension with an opt-in strategy would provide a higher return than a balanced and conservative fund together with lower risks than those associated with investing in dynamic funds for the whole of the investment period.

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