Invest your pension money

Your employer pays a monthly premium for your retirement pension. You can choose how this money, or parts of it (depending on whether you have ITP 1 or ITP 2 ) should be managed. You do not have to make a choice. If you do not make a choice, your money will be invested in a quality assured insurance policy with low fees.

If you wish to make a choice, you do that by completing the choice form. First you choose the type of management and who you wish to manage your money.

  • If you choose a traditional insurance you are guaranteed a minimum interest or a premium guarantee. If the company is more successful in its management, you will receive a higher return

  • If you choose unit linked insurance you are taking a greater risk and you are not guaranteed any value appreciation on your money.

Choosing the type of savings

When you choose the form of savings, base your choice on your interest and your willingness to get involved in your occupational pension.

I do not want to spend time on my pension

You do not want to be very active in your pension savings? Do you want a safe investment with certain guarantees? Then traditional insurance is right for you. The insurance company decides on the investments.

Do you want higher risk and the possibility of a higher return, but still not be active yourself? Then you can choose a unit-linked insurance and still be in the company’s default investment solution. The default investment solution consists of one or several funds. The company chooses which funds should be included and which level of risk the funds should have. The funds are managed by fund managers. Here, there are no guarantees as with traditional insurance. However, the risk decreases as you approach retirement.

I want to be involved in my pension

Are you willing to spend some time on your pension savings? Do you want to choose investments and have a higher share of equity stocks? Then you can choose unit-linked insurance and move on and select separate funds from the company’s offering. If you choose unit-linked insurance, there are no guarantees. The size of the pension capital depends on how the investments are going and what fees you have to pay.

You can also decide to remain in the default investment solution. The unit-linked insurance company chooses which funds should be included and which level of risk the funds should have.

Default investment solutions change gradually from a high share of equity investments to safer investments as retirement approaches, and thus mean lower risk than individual funds.