BeFrank invests the pension contribution in lifecycles. We review our investment offerings annually to see if there is room for improvement. We strive for an optimal risk/return ratio and for increasing sustainability. The lifecycles have therefore been improved a little once more. You can read more about it in this article.
What is improving?
In the reduction phase of the lifecycles, we are making less use of matching funds and more use of safe corporate bonds and mortgages in the hybrid fund. This ensures better expected pension results. You can see below what that looks like for a neutral investment profile. If employees have a neutral investment profile we start reducing the investment risk 12 years before the retirement date. If they invest (very) defensively, that will happen earlier. And if they invest (very) offensively, it will be later.
Small change in investment fees
As a result of this, fund costs have increased by an average of 0.001% per year. However, the improved expected pension results more than outweigh this. On the personal pension page your employees can see at a glance what fund costs we charge.
Good to know: From 2022 onwards, we will adjust the investments to the birthday of your employees. They can see the effect of this a few days later on their personal pension page.