What to choose for investment – a pension fund or an insurance company?

There is no particular difference between a pension fund and an insurance company. An insurance company can offer a larger range of services (in addition to savings and annuity payments, in particular insurance in case of death, disability, illness) and more options for choosing investment programs.

The insurance company’s business is more diversified and in the event of an increase in the life expectancy of pensioners, its losses will be less than those of a pension fund.

On the other hand, the pension money kept in the insurance company is not allocated to a separate fund, and in the event of bankruptcy of the insurance company, this money may be lost.

At the same time, in case of bankruptcy of the pension fund management company, pensioners’ money will be saved.

In this sense, a pension fund managed by an insurance company is interesting . Such a symbiosis makes it possible to combine the best qualities of both forms of organization of supplementary pension provision.

Author: Nataly Kramer