Results of the risk attitude survey and determining risk attitude

At BeFrank, participants accrue their pension through a defined contribution scheme.
The amount of the pension is not fixed. It depends on the contributions paid and the investment returns. That’s why it’s important to invest in a way that suits the participants.

Choose for yourself or stick with the default

Participants can decide how much investment risk they want to take. If no choice has been made yet, BeFrank invests by default based on the average risk attitude of all participants. Employers can, under certain conditions, choose a different default.

Legal requirement: determining risk attitude

BeFrank is legally required to assess every 5 years how much investment risk participants want and are able to take. Based on this assessment, the risk attitude is determined. This ensures that the investment policy aligns well with the average participant. The results also help employers and employees make better decisions about the pension scheme, such as the default investment approach.

What does this mean for participants and employers?

Research shows that a lifecycle with a neutral investment risk and a gradual reduction towards a variable pension benefit, with 30% continued investment after retirement, fits the average risk attitude of our participants. This is our standard lifecycle. An employer can also choose a risk reduction towards a fixed benefit as the default.

How was the research conducted?

The risk attitude survey was carried out in collaboration with a leading consultancy firm. The study focused on participants with a defined contribution scheme and used various research methods based on scientific insights. This provided a clear picture of the risk participants want and can take, both during the accumulation phase and the decumulation phase. BeFrank reviews its investment policy annually. The risk attitude helps us tailor this policy as closely as possible to participants.