At BeFrank, your expected pension benefit is not fixed. It can sometimes be higher or lower. This is part of the way you accrue your pension. At BeFrank, we invest your pension capital. Fluctuations in the stock market may affect your expected pension benefits. These are usually small differences. But sometimes there are larger differences in your expected pension benefits. This blog explains why this is.
We take account of return, interest rates and price increases
To estimate what your pension capital can yield in terms of expected pension, we calculate how the economy will develop over time. We use 2,000 different calculations for this. This takes into account the development in investment return, interest rate developments and price increases. De Nederlandsche Bank (DNB) provides these calculations. We call this the Uniform Calculation Methodology (Uniforme Rekenmethode, or URM). All pension administrators in the Netherlands work with this. If DNB adjusts the calculations, this will affect your expected pension benefits. It is good to know that this only says something about your expected pension benefits. Your accrued pension capital does not change as a result.
Tip: If you see a change in your expected pension benefits, also take a look at the amount of your accrued pension capital. Because that is the amount that you will eventually use to buy your pension.
We keep a close eye on your investments
Adjustments in the investment mix can also affect your expected pension benefits. We want to achieve the highest possible return for you with an appropriate level of risk. We therefore regularly review our investment policy. If legislation, market circumstances or risk or return expectations give cause to do so, we adjust the investment mix. This can have consequences for your expected pension benefits.
Your expected pension benefits may therefore sometimes be lower or higher. That is part of the way you accrue your pension. The amount of your expected pension benefits may also change if DNB adjusts the calculations we use to calculate your expected pension. And sometimes a change in the investment mix also affects the amount of your pension.
Tip: Did you know that at BeFrank you can check the return on your investments 24/7? Take a look at the graph . You will see that sometimes your return is a bit lower and sometimes a bit higher. But you will also see that across the entire period there is an upward trend in your return.
You are in control of your pension
That may sound a bit strange now: you are in control of your pension. But that is how it is. Okay, the amount of your pension is not fixed in advance. But with BeFrank, you can determine how much risk you want to take with your pension investments. And how we invest your pension capital. The choice is entirely up to you. Use our Profile Selector to easily determine which investment risk suits you. So take control of your pension today!