The Georgian Pension Agency has reported significant financial growth in their latest fund report as of March 2023.
With a pension fund of 3.23 billion GEL, representing the savings of 1.2 million citizens, the agency has accrued benefits of ₾490 million. The fund's growth has been hindered by high inflation rates in the last two years, causing lower real growth. Despite this challenge, the pension system has seen a real balance increase of 4.28% since its launch in January 2019.
The majority of the pension savings, 60%, are invested in Georgian banks' certificates of deposit, while 16% are invested in government treasury bonds, 12% in international company shares, 5% in foreign government securities, and 4.5% in bank accounts.
In a recent investment move, the pension agency has invested 8 million GEL in an 80-million bond issued by TBC Leasing. The bond has a maturity period of 3 years and a rate of the Tbilisi interbank rate plus 3 percent, currently at 14%.
The successful investment activities of the Georgian Pension Agency demonstrate the effectiveness of their cumulative pension system, ensuring that citizens' savings are well-managed and yielding significant benefits for the fund's participants.
