Georgia’s pension savings have exceeded GEL 10 billion, but eight years after the Pension Fund was established, the vast majority of participants’ savings remain in the conservative portfolio.
The conservative portfolio holds GEL 9.8 billion, compared with GEL 56.9 million in the balanced portfolio and GEL 70.3 million in the dynamic portfolio. Pension Fund Acting Chief Investment Officer Ana Nachkebia said limited awareness of the portfolio options and low financial literacy are among the main reasons.
All employees are automatically enrolled in the conservative portfolio and can change their investment choice through Public Service Halls or Pension Fund offices. Nachkebia said around 99% of participants remain in the default portfolio, a trend also seen in other countries.
The conservative portfolio invests about 80% of assets in fixed-income instruments such as deposits and bonds, with 20% in international equities. In the dynamic portfolio, nearly 55% is invested in foreign equities and about 45% in local instruments. The Pension Fund says the balanced and dynamic portfolios have generated significantly higher returns since their launch three years ago, largely due to their higher exposure to international equities.
