Unconcerned future

The pensions from the compulsory pension and disability insurance will continue to decrease in the future due to the reduction of the rights of the insured persons, therefore it is necessary to consider the various options of saving for an additional pension plan. Unfortunately, saving within the supplementary voluntary pension provision (PDPZ) shall not suffice for any adequate supplement of the pension revenue we will receive from the first pillar, i.e. from the government, therefore we should consider alternative forms of saving.

The portfolio means are invested in the stock and bond index ETZF funds, and the shares are flexible, depending on approaching the target year of entering the pension. A classic approach to investing based on the life cycle begins with investing into investments with a relatively high risk and potentially higher revenue (stocks), and in time the strategy approaches the investments with a lower risk and lower potential lucrativeness (bonds).

The essence of the life cycle portfolio is such that the investors age along the entire life cycle of the portfolio and thus reach optimal revenues on the invested means. The portfolio is designed to adapt the investors’ means by the target year gradually – from mostly stock investments to mostly bond investments. The idea of the life cycle with built-in transition into a less risky investment policy also helps protect the assets of elderly insurance holders from potential capital losses. In other words: the younger the investor and the longer the time period of investment, the higher the risk that can be afforded. Whereas the older the investor, the more stable should the revenues be and the investments less risky.

ILIRIKA Modro Varcevanje is not limited or designed to provide contractual sanctions in case the client does not provide regular monthly payments.

ILIRIKA Modro Varcevanje with its automatic flexibility of the investment structure via the life cycle introduces the appropriate level of investment risk considering the age of an individual. All securities in the individual’s portfolio are archived with the trust bank and are excluded from the bankruptcy estate.

The investment is not time limited and the investors can exit freely without any additional costs or exit provisions.

The capital gains tax is calculated in the year after the disposal of the product. The capital gains tax rate is determined for each individual ETF fund considering the investment period for the individual ETF fund. The ETF fund, which will be purchased in the beginning of a saving period, will be taxed by a lower rate than the ETF fund purchased in the last year prior to the target date.

The procedure of inheritance is determined and defined in the inheritance proceedings where all investments or ETF funds are distributed among legal heirs, and they are free to manage them as they wish.