The Slovenia Insurance Supervision Agency published an overview of an upcoming presentation at its annual conference in Ljubljana on 11 September, focused on longevity risk, decumulation and the affordability of annuities in Slovenia’s second pension pillar. The preview argues that while the accumulation phase is relatively well developed, weaknesses in the payout phase are undermining confidence and slowing the system’s maturity. In the planned lecture “Longevity, Decumulation and Affordable Annuities”, Dr Vida Šeme Hočevar (management board member, Triglav Pension Company) highlights longevity, investment, interest-rate and behavioural risks for retirees, and points to current design frictions including largely fixed or only slightly increasing annuities, restrictions on withdrawals (including a prohibition on lump-sum withdrawals above EUR 6,290.17 and limits on accelerated annuities above EUR 20,000), conservative annuity-calculation assumptions under Articles 8 and 9 (technical interest rates and static mortality tables) and an 8.5% tax on transfers from accumulation to decumulation where accumulation lasted less than 10 years. Proposed directions include enabling more annuity types (deferred, partially variable and hybrid structures such as “Flex First, Fix Later”), introducing profit participation to reduce inflation risk, supporting later annuity purchase when longevity risk is highest, improving member guidance, pursuing tax neutrality including removing the 8.5% tax, and allowing slightly broader but still conservative investment options to improve returns. The agency’s overview is accompanied by a supporting PDF and serves as an advance outline of the 11 September conference session.

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