18.Oct .2021 14:00

Pension Fund’s Earnings Must Exceed The Inflation In The Long Run – Danelia

Pension Fund’s Earnings Must Exceed The Inflation In The Long Run – Danelia
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Giorgi Danelia, director of Pension Agency declares that their goal is pension fund’s earnings to exceed the inflation in the long run.

According to him, since 2019, after the accumulative pension system was launched in the country, the earnings are 5% higher than the inflation in the same period.

Currently, Georgia has a record high - 12.3% inflation, while the pension funds’ earnings are lower and amount to 11%.

"Our main goal is to beat inflation in the long run. From the very first date up to date, our earnings have been about 27% when total inflation was over 22%. This means that we have real earnings of 5%, which exceeds by 5% to the inflation.

Naturally, inflation is volatile, it may increase or decrease in some period, but at the end of the period when the beneficiaries receive savings, more investment should be generated during this time than the total inflation,” said Giorgi Danelia, head of the Pension Agency.