Your pension savings are important. The day you stop working is the day you start living full time. And as you are no longer working you need another source of income in order to afford it. Pension savings can give you that. Because to continue living to the standard that you are accustomed to, a state pension is not enough. But if you get started well in advance, you can sit back and let compound interest work for you and ensure that you can afford to live comfortably for the rest of your life.
By making pension savings available to your employees, you are offering them financial security to live the life they want on the day they leave to go on pension. You can ensure that all your employees can afford to live comfortably for the rest of their lives and give them the confidence to look forward to growing old.
Okay. What you are about to read now seems rather dry, especially compared to some of our earlier comments, but it is also rather important. So do yourself a favour and hang on a little longer. We promise to keep it short and speak in a language you understand.
At Grandhood, we have three investment products for you to choose from. They are called Index, Aftryk and Aktiv. They have their similarities, but also some significant differences. One of their similarities is that they are all responsibly invested. This means that you do not invest in companies that produce illegal weapons, offer tax evasion, or extract coal and oil sands. We outline their differences briefly below. If you need to know more, you can of course ask us.
Aktiv is an investment product that is actively managed, and thus builds on the traditional way of investing pension savings. The fact that the investments are actively managed means that the market is constantly being monitored, so should new opportunities arise that can give a higher return, your pension savings can quickly be invested in them.
The sustainable choice
Aftryk is our sustainable investment product. It is for those who would like to help sustainable development. Here, all the investments are ESG-screened, which means that we opt out of investing in fossil fuels, tobacco, alcohol, weapons, gambling, and pornography. This also means that you achieve a significant CO2 reduction compared to other investment products.
Index is an investment product with a focus on keeping costs down and at the same time ensures you as high a return as possible. If you choose Index, your pension savings will be invested in an index. In short, an index is a way of grouping stocks or bonds. Investments in Index ensure a good spread of risk, which reduces the chance of large fluctuations. Investments are made in five stock indices and five bond indices.
So far so good. Once you know how your pension savings are to be invested, you must choose an investment profile. It indicates the balance between return and risk.
This means that you must choose how risky the investments will be. The risk you choose also has an influence on the return you can expect. And don't worry, we'll give you a personal recommendation on what to choose. We do this based on a series of questions we ask you when you register. But regardless of which investment profile you choose, your pension savings will of course be responsibly invested.
It is important to point out that whatever investment profile you choose, it will be automatically adjusted down, so that your pension savings will be more safely invested as you approach your retirement age. In this way, you will not experience large fluctuations immediately before you retire and go on pension. With this peace of mind, it is easier to sleep well at night.
The safe choice
If you choose Lower, your pension savings will be more securely invested, but you will also have a lower expected return. However, if the very thought of risk keeps you awake at night, Lower is the investment profile that gives you both peace of mind and a good night’s sleep.
Solid returns and moderate fluctuations
If you choose Balanced, you choose an investment profile with a carefully balanced ratio between a good, expected return and a balanced risk. This means that you will have a good mix between safer investments that give a lower expected return and other riskier investments that conversely give a higher expected return.
The largest expected return.
If you choose Higher, you will have the highest expected return, but also the highest risk. Of course, this does not mean that all your retirement savings are invested in Bitcoins and Tesla. Your pension is still responsibly invested with good risk diversification. But you will be able to experience greater fluctuations - both up and down.
The market goes up and down. It has always done so, and it will probably continue to do so in the future. But it has always gone up more than it has gone down. And that despite several economic crises. What is sure is that a good investment requires that you invest for the long term and be on board for the long haul.
Therefore, pension savings is a good idea. And it's an even better idea to get started well in advance. If you do, you are in for the long haul the market works for you and you benefit from the market's long-term growth. Giving you an enjoyable and comfortable retirement.
*The investment of your pension follows the development of the market, and therefore it can go up and down, but typically in the long run it will go up.
*Historic returns are not a guarantee of future returns.
We’ve built the pension of tomorrow with the support of Velliv. Velliv is Denmark’s third largest pension company and is 100% customer owned.
When you’ve got pension with Grandhood, you’ve got pension with Velliv.