What do you say to employees who would rather not have their pension money invested?

Pension contributions are always invested. It does not matter whether the pension is built up with a pension fund, an insurer or a PPI. Pension administrators do this so that employees will have a good pension in the future. If they had only put the pension contributions in a savings account, Dutch pension assets would now have been more than five hundred billion euros lower. In investing, return and risk go hand in hand. But many employees are wary of the risks. Logical. Because prices can not only rise, but also fall. Significant stock market declines are often widely reported in the media, while steady rises rarely make the news.

Know more: 7 things you want to know about rapper and The Voice coach Ali B. – tumult around popular talent show damages image.

Is the fear of investing justified?

While investing always carries risks, employees need not fear. After all, pension administrators have experienced investment experts at the helm. They use investment strategies that create a lot of long-term value. They do not work with an investment horizon of, for example, three months, but look years ahead. Is it once against the stock market? Then there is often enough time to make up for such a decrease.

What other misunderstandings play a role in pension and investing? Business Insider submitted five statements to Aegon Cappital, Aegon’s premium pension institution (PPI). Statement 1: Employees have nothing to say about how their pension is invested

Know more: Climate jobs: major shortage of technical professionals in the construction industry for insulation, solar panels and heat networks.

Certainly not true! With defined contribution schemes such as we implement, employees themselves determine how their pension is invested. For example, we work with a Profile Indicator. Did an employee answer the questions? Then we know how much risk he can and wants to take with his pension. And which investment profile suits it best. Then we will invest exactly in that way.

Statement 2: In pension investing, returns take precedence over society and the environment

Not true. At Aegon Cappital we naturally ensure the best possible pension. But we are also committed to a world that cares for people, society and the environment. Not in one special green life cycle, but with all our investments. By the way, did you know that responsible investments have a demonstrably better return? It is therefore not necessary to choose between a good return and responsible investment.

Know more: Podcast The Next Move with Lieke Schepers (Yacht) and Marcel Molenaar (LinkedIn): how the mute button makes virtual meetings more inclusive.

Statement 3: The interest rate is important for the level of your pension

True. How much pension an employee will receive later depends largely on two things. The value of the investments. And the interest rate on the retirement date. The lower the interest rate, the lower the pension. At Aegon Cappital, we therefore reduce the risk of low interest rates as an employee approaches retirement. We do this with a special investment fund.Specialized pension investors such as Aegon Cappital invest according to the lifecycle principle. This means that the investment risk is gradually reduced as someone gets older. The carefully built up pension capital of an employee will therefore not just go up in smoke.

Know more: 7 qualities of introverts that can make them feel appreciated at work.

Statement 5: Collective pension investing is better than individual pension investing

Not true. Where pension funds invest all their money in one way, premium pension institutions (PPIs) do it very differently. With a PPI, each participant has his own pension pot. Property rights are crystal clear. And because everyone has their own pot, it is also possible to invest smarter.

Future-oriented employership

This is an article from our “Forward-Looking Employability” series, powered by Aegon. As an employer, you want to arrange things well for your employees. Aegon and Business Insider are happy to help you with that. By pointing out obstacles and opportunities in good time. And by offering the right products and services, such as an Aegon Cappital pension plan.

Know more: 7 lessons you can learn from Oprah Winfrey’s interview with Meghan and Harry – if you want to get more out of a conversation.

About Aegon Cappital

Aegon Cappital is Aegon’s premium pension institution (PPI). We have been active in the pension market since 2012. Aegon Cappital helps you and your employees think ahead when it comes to retirement. We now do this for more than 5,600 satisfied employers and more than 270,000 employees. Also a pension provider who thinks ahead with you? Look at www.aegoncappital.nl..

Author: Jobly