Nederlands
To build up capital, pension funds can either save or invest. By saving, pension funds opt for security. While investment brings greater risks, it can also mean higher yields for your pension.
More than four in ten employees believe that depositing your pension in a savings account will produce the biggest returns. But if pension funds had done so, pensions would not be as high as they are now. Research conducted a few years ago by the Dutch Association of Industry-Wide Pension Funds revealed that this would result in 40% less pension for the same contribution. In the long term, investing therefore produces the greatest returns.
Saving provides security, but also has a flipside
Saving is a relatively safe way of building wealth. The money you deposit remains yours, and you also receive interest that guarantees you a certain return. Although this means there is little risk, there is a flipside to saving. For instance, interest rates have dropped significantly in recent years, sometimes lower than inflation, meaning that savings produce far lower yields than before – and that your money even drops in value.
Opting for returns
In the long term, investment often produces higher returns than savings. However, the fund runs a greater risk due to fluctuations in the stock market. These risks can be managed by spreading the investments, but returns can be higher or lower than expected. In the long term, investing produces the greatest returns.
Savings provide more security than investments; but ultimately, security is costly.
Further informationÂ
If you would like to know more about your pension, please see the information on the investment regulations. <link naar https://www.pensioenfondsastellas.nl/wat-zijn-de-risico-s-voor-mijn-pensioen/wat-zijn-de-risico-s-voor-mijn-pensioen/volgens-welke-regels-belegt-ons-pensioenfonds>