kogumispõhised

Kogumispõhised is an Estonian term that translates to "fund-based" or "savings-based" in English. It is most commonly used in the context of financial systems, particularly in relation to pensions and investments. In Estonia, a significant portion of the pension system operates on a fund-based model, meaning that contributions are invested in various funds, and the future pension payout depends on the performance of these investments.

This system differs from a purely pay-as-you-go system, where current contributions are used to pay current pensions. In a kogumispõhised system, individuals build up their own savings over their working lives. These savings are then managed by pension funds, which invest the money in assets such as stocks, bonds, and real estate. The goal is to generate returns that will grow the accumulated capital over time, thus providing a more substantial pension upon retirement.

The performance of these funds is influenced by market conditions, investment strategies, and the management fees charged by the fund providers. Individuals often have some choice in selecting which funds their contributions are invested in, allowing them to tailor their investment strategy based on their risk tolerance and expected returns. The kogumispõhised approach aims to promote individual responsibility for retirement planning and to potentially offer higher returns compared to traditional pay-as-you-go systems, though it also carries investment risk.