If it is true that costs are among the factors that most affect the final returns of a long-term investment, it is equally true that there are few investments with a longer time horizon than those made with a view to retirement. Starting from these two assumptions it is clear why the commissions of the second pillar instruments are particularly important.
Costs can have a significant impact on the position accumulated by the subscriber. For example, assuming that over a period of 35 years the supplementary pension that can be obtained by joining a negotiated fund is equal to 5.000 euros per year, the higher average costs of open funds and Pips translate, other things being equal conditions, in a much lower final payment and, respectively, equal to approximately 4.200 and 3.900 euros.
Even by observing the types of sector and comparing the onerousness of the various pension forms, contractual pension funds are confirmed to be particularly competitive. According to data from Covip, the Commission for the supervision of pension funds, the average Isc (Synthetic Indicator of Costs) stands at 1,1% over two years of participation to drop to 0,3% over 35 years. Over the same time horizons, the Isc went from 2,3% to 1,2% in open funds and from 3,8% to 1,8% in Pips (Individual Pension Plans).
This trend is even more important if it is linked to collection flows, which for many years now have constantly rewarded the most expensive products, i.e. Pips, the only ones that continue to grow in terms of subscribers. These products, in addition to presenting a decidedly higher Isc than the others, do not even benefit from the employer's contribution. The reason for their success lies in the sales networks. The Pips are in fact placed through a commercial system of promoters and agencies to which it is convenient to place the individual plans precisely because of the high commissions
Even looking at the types of sector, contractual pension funds remain cheaper in comparison with other supplementary pension schemes. According to Covip data, the pension funds available in Italy have commissions ranging from a minimum of 0,23% to a maximum of 4,13% (calculated over a ten-year period).
In fact, in general, the Isc depends on the reference time horizon: typically lower values are observed as the period of participation increases as the incidence of initial fixed expenses on the accumulated amount decreases. However, the commissions also depend on the type of investment line chosen (typically higher values are found as the equity content of the line increases or in the presence of guaranteed results).
Despite the absence of evidence of a superiority of the more onerous sectors in terms of returns obtained, a virtuous competitive mechanism has not therefore been triggered in favor of the less expensive forms of pension.
It is in this context that the recent provisions issued by Covip on communication and transparency are inserted, starting with the revision of the Information note, for example by adding the presentation to potential members of graphic forms of comparison of the costs of the various forms of supplementary pensions.
