Published On: Tue, Jul 21st, 2020

A closer look at the effects of pension reform

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PHILIPSBURG – Media reports about the reform of the pension system, combined with an advice from financial supervisor Cft have caused some confusion about the real state of affairs.

Minister Panneflek announced that the AOV-reserves (the funds used to pay old age pensions) will be exhausted in 2038 and the Cft expressed concerns that the 11.11 percent increase of the pensions would wipe out the savings that would result from the increased retirement-age.

Is this is a reason for panic among those who will retire around eighteen years from now? Not yet. Let’s take a closer look at the AOV-fund first.

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