With no incentive to save long-term, the Portuguese are withdrawing the money they put into Pension Savings Plans (PPR) to cover more immediate expenses, such as repaying home loans. According to the latest data from ASF – the Supervisory Authority of Insurance and Pension Funds – in the last quarter of 2023, 982 million euros were redeemed in PPR, which is 418 million more than in the same period in 2022.
It should be remembered that the 2023 budget enshrined the principle that early mobilization (less than five years) of partial or full pension/education savings plans to “pay installments under loan agreements guaranteed by the mortgage of property intended for the participant’s own and permanent home, as well as installment loans for the construction or improvement of real estate for own and permanent housing, as well as the supply of housing cooperatives with solutions for permanent own housing” will not be subject to fines.
Another trend observed in the last three months of 2023 was the growth of health insurance (16.7%) and occupational accident insurance (11%), which increased their weight in insurance production in the Non-Life sector. In the health insurance sector, the portfolio of insurance companies is already valued at more than 1.3 billion euros.
In total, accident and health policies already account for 40.5% of the total Non-Life portfolio structure in Portugal.
Author: Miguel Alexander Gagnan([email protected])
Source: CM Jornal
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