Top-Performing Pension Funds: A Comprehensive Ranking

Choosing the Right Pension Fund for a Secure Future

For those aspiring to retire early and secure a higher pension, identifying the best-performing pension funds is crucial.
In a climate where pension funds are surpassing severance pay (TFR) due to a recovery in stock markets and controlled inflation, selecting the right pension fund becomes critical.
Recent performance data from the Covip authority highlights that funds with greater equity exposure yield significantly higher returns than TFR, making pension funds an increasingly attractive option for a peaceful retirement.

This choice becomes even more strategic with the upcoming changes in the 2025 Budget Law, aimed at incentivizing the second pillar of social security to ensure enhanced economic security for future retirees.
Key proposals include the reintroduction of a tacit consent mechanism for TFR transfers to pension funds, which could accelerate the growth of these instruments and amplify earning opportunities for those who choose to participate.
Furthermore, remember that contributions to pension funds are tax-deductible, representing one of the most advantageous tools for saving on income taxes (Irpef).

Pension Fund Performance: An Overview

The Covip analysis of pension fund performance reveals substantial differences among various fund types.
Equity and balanced funds have shown excellent performance, especially compared to bond and guaranteed funds.

In the first half of 2024, equity sectors produced impressive average returns: 6.4% for negotiated funds, 7.3% for open funds, and a remarkable 9.7% for Individual Pension Plans (PIP).
Conversely, balanced funds had average yields of 3.1% for negotiated funds, 3.5% for open funds, and 4.5% for PIPs.

Bond and guaranteed segments displayed lower average returns, with some nearing zero percent.
When examining returns over longer periods, results confirm a similar trend.

Between 2014 and the end of 2023, including the first six months of 2024, equity-heavy funds yielded annual average returns around 4.5-5%.
Balanced funds generated returns between 2% and 3%, while guaranteed and bond funds displayed average yields below 1%.
During the same period, TFR experienced a 2.3% adjustment.

Top Performing Pension Funds

When choosing a pension fund, it is essential to consider not just returns but also the associated costs and the fund type that best suits your retirement needs.
Below is an overview of the best options available on the market, categorized by investment type, assuming a monthly contribution of €100 over 20 years, totaling €24,000.

Guaranteed Pension Funds

For those seeking safety and stability, guaranteed pension funds are a valid option.

Pension Fund	Expected Return	Total Costs	Net Gain
Poste Vita Spa	€7,143.81	€3,339.30	€3,804.52
HDI Assicurazioni S.p.A.	€6,577.06	€2,914.00	€3,663.00
Genertellife Spa	€6,972.68	€3,835.23	€3,137.45

Bond Pension Funds

Bond funds offer greater safety but generally lower yields.
Here are the top in this category:

Pension Fund	Expected Return	Total Costs	Net Gain
Compagnia Italiana di Previdenza	€954.62	€1,409.28	-€454.67
Società Reale Mutua	€1,087.09	€1,549.27	-€462.18
Mediolanum Vita Spa	N/A	€3,106.74	N/A

Balanced Pension Funds

For a balance of risk and return, consider the following:

Pension Fund	Expected Return	Total Costs	Net Gain
Intesa SanPaolo Vita Spa	€13,374.39	€4,688.86	€8,685.54
Arca Vita Spa	€13,247.42	€4,572.54	€8,674.88
HDI Assicurazioni Spa	€12,869.45	€4,669.53	€8,199.92

Equity Pension Funds

Lastly, equity funds are suitable for investors willing to embrace volatility for higher potential returns:

Pension Fund	Expected Return	Total Costs	Net Gain
BBC Vita Spa	€45,488.13	€8,021.31	€37,466.81
AXA Assicurazioni Spa	€37,190.45	€4,416.09	€32,774.36
Sara Vita Spa	€37,020.64	€5,769.78	€31,250.85

Conclusion

The choice of a pension fund hinges on multiple factors, including risk profiles and long-term objectives.
Although equity funds present higher risks, they tend to yield the best returns, evidenced by PIPs with potential yields over 30%.
Balanced funds offer a middle ground, while guaranteed funds suit those prioritizing safety with modest returns.

Moreover, it is essential to consider costs associated with each fund, as they can significantly impact net earnings.
Readers should meticulously evaluate both costs and historical returns of the funds, along with their investment horizon.

To enhance outcomes for supplemental pensions, diversifying investments and selecting funds that balance risk and return is advisable.
With strategic planning and well-informed choices, individuals can achieve a supplemental pension that substantially contributes to their future financial well-being.

For further reading, check out our complete guide on pension fund taxation.

Disclaimer

The information in this article is for informational purposes only and should not be used as the sole basis for investment decisions.
Readers retain full responsibility for their investment choices, as individual risk tolerance and time horizons vary.
The information presented does not constitute an offer or solicitation for public savings.