Financial markets are in turmoil. What effect is this having on your pension?

The financial markets did not get off to a great start in April. The U.S. announcement of import tariffs has sparked unrest and major stock market swings. We understand you may be wondering what this means for your pension, so we will explain the situation to you.

What are the stock market fluctuations doing now?

The current uncertainty in the financial markets is leading to more fluctuations and fluctuating investment results, particularly in the case of investments in equities. When it comes to your pension, this may currently affect the value and return on your investments. Investments with a more offensive investment risk are being hit harder than investments with more defensive risk at the moment. After all, a more offensive investment risk means investing more in equities. However, when prices rise again, the rule goes: with a more offensive investment risk, returns rise faster than with a more defensive investment risk.

We are keeping an eye on developments

We are keeping a close eye on market developments. Our investment policy is geared towards the long term. In doing so, we carry out extensive studies to determine the long-term investment mix. We take account of possible changes in the world view in this regard.

Past experience has shown that a dip in the stock market will recover in time and that long-term investments can benefit from growth.

How we invest for you

At BeFrank, you have your own pension fund, which we invest for you. However, your investment value almost never develops in a straight line upwards. If you see the value of your investments fluctuating, there is no need to panic! Below, we explain how we invest on your behalf using three interesting facts:

1. Long term
   We invest for the long term. The stock market always experiences peaks and troughs. This is natural. We keep a close eye on the markets.
2. Diversification
   We diversify our investments across sectors and companies around the world, investing particularly in both equities and bonds. This is to reduce risks and increase the chance of a good return.
3. Risk reduction towards your pension
   The closer you get to your retirement date, the less risk we take when investing. This is because, the older you get, the less time there is to make up for potential setbacks. We will therefore increasingly switch your investments from equities to bonds. And with your pension in sight, we gradually invest more in matching funds. In this way, we ensure that your pension is less dependent on the interest rate and developments on the stock market.

What about my pension?

We understand that you may be concerned about your pension. You can also make your own choices within our investment strategy, but you don’t have to. You can invest with the risk and the type of investment that suits you. Will something change in your personal situation or do you want to check whether your way of investing still suits you? Go to your personal pension page and use the Profile Selector.

Whatever type of investment and investment risk you choose, as a pension administrator we are not allowed to give you advice. If you do want that, please contact a financial advisor. If you have any questions about your pension scheme, please contact us. We will be happy to help you!