Scarcely a week goes by that we don't hear another telling of the latest fairy tale, that people saving in the second pillar of the pension system will have their deposits eaten by the big bad wolf - the management of their pension savings funds. Whoever is generating these tales has clearly forgotten that the 1.6 million people saving in the second pillar are not little children, and that they know very well that scary tales of collapse and a loss of deposits are just fantasy. Pension funds in Slovakia belong to international banks and pension companies, and will not just crash from one day to the next.
People, like PM Fico, who compare pension savings companies to pyramid schemes also clearly have never heard of gradual asset appreciation, capital adequacy, portfolio diversification or asset management. The public knows that for the doomsday scenarios put forward by critics of the second pillar to come true, we would have to see a collapse of financial markets all around the world, not just in Slovakia. If this happened, not even the first pension pillar would survive.
The pension statements of government politicians are like a bad film whose director and producer count on the stupidity of the audience for the film to be successful.
Hospodárske Noviny, February 13
19. Feb 2007 at 0:00