The pension report provides information about the accumulated capital of your chosen pension plan and how it changed in the previous year. The report also provides a forecast of the accumulated capital with three investment return scenarios – positive, moderate and negative. The scenarios are for each of your contracts, assuming you continue to make contributions to your existing pension plan as before. This projection has been calculated in line with the Financial and Capital Market Commission Regulation No. 177 “Regulations on the Procedure under which a Private Pension Fund Prepares Information on the Projections of Disbursements of the Pension in the Report on the Supplementary Pension”.
The calculation of the projections is based on:
- the amount and frequency of your contributions over the last three years;
- the period of saving up to the retirement age defined in the Pension Fund Law or, if you have reached the age of 45, a forecast for the next 10 years;
- the currently applied contractual deduction rates;
- the investment performance of your chosen pension plan over the last 10 years;
- forecasts of macroeconomic indicators in Latvia, including average gross salary increases and inflation rates.
This is only a forecast and none of the scenarios are guaranteed, but it gives an insight into how your current investment habits may affect the future capital in the pension plan you have chosen. Historical performance of pension plans does not guarantee equivalent future results and projections may differ from the actual amount of additional pension you will receive.