Money that is invested is expected to generate on the longer term a better return than money held in a savings account.
During the past 40 years, Pensioenfonds Zorg en Welzijn has achieved an average return of 8% per year*. By means of the expected higher investment returns and tight risk control, the pension fund strives to offer a high-quality pension with lower pension contributions.
Earning money for our participants
The aim of the investment policy is to earn money for the participants in the pension fund. It is important not to take too much risk. Investments may decrease in value, making the payments of current and future pensions less certain.
What happens if no risk is taken?
Investments entail risks, but investing with risk is expected to generate higher returns. What would happen if no risk was taken and the money was held in a savings account? As a consequence, the pension contribution would have to double in order to provide the same pension. An employee currently works an average of one day for his pension. If the money was not invested, he would have to work two days.
In order to offer a high-quality pension with an acceptable contribution level, the board of the pension fund determines each year how much risk can be taken with investments and the return that can be expected on those investments.
* Reference date: 1 September 2010. The value of investments may fluctuate. Past performance is no guarantee for future returns.