SIGNIFICANCE AND PROSPECTS OF VOLUNTARY PENSION FUNDS IN SERBIA

Serbian pension system is facing a serious crisis. The concept of current pension funding, along with the extremely unfavourable ratio between the number of employed and the number of pensioners, significant unemployment and adverse business conditions pose a great financial burden on the employed population. Modern pension insurance systems are three-pillar systems, however the introduction of the second pillar in our country shall wait for better days.
The third pillar of the pension system is based on voluntariness. Thus, the pension system functions in three interrelated processes: payments to voluntary pension funds, investment of unemployed assets, and finally scheduled payments - pensions. Stability of voluntary pension funds inflow and payment predictability ensure building of a quality investment portfolio and realisation of a long-term return on investment.
Enhancing trust of citizens in this saving method is a key to success of Serbian voluntary pension funds.