Challenges and Perspectives of Development of Private Pension Funds in Serbia
Challenges and Perspectives of Development of Private Pension Funds in Serbia

Summary/Abstract: Following the successful implementation of the Chilean reform, the World Bank proposed a solutionfrom three pillars of the pension system: compulsory state, compulsory private and voluntaryprivate pension insurance. Serbia, like many other developed and undeveloped countries, has onlyadopted the third pillar, in addition to the already existing state. The introduction of compulsoryprivate insurance was also considered. However, there are no market conditions or financialpossibilities for achieving this idea. Voluntary pension funds in Serbia were introduced by the 2005laws. There are seven voluntary pension funds in Serbia, managed by four management companies.So far, the funds have achieved positive yields, although due to limited investment opportunities,these rates were very modest. In addition to limited investment opportunities, one of the problems isthe accumulation of funds. The problem of population savings has many sides, and it is certain thatsome of the causes can be sought in bad experiences from the past. The paper analyses thelimitations and possibilities for further development of private pension funds.

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