Due to the strong stock market performance in 2021, many pension savers have decided to withdraw the capital from their pension savings fund. This is evident from a survey of The time at the four major banks and Argenta.
The stock markets have had a strong year. For example, the Bel20 rose by 19.02 percent in 2021 to 4,310.15 points. The fact that the stock markets performed well last year is also the pension savers don’t miss it. A question from The time at the four major banks and Argenta learns that they have massively cashed in their pension savings. Many of them have been waiting in 2020 to request their capital. That year, the corona crisis broke out and the stock markets took a sharp plunge.
Outflow of pension savings funds
This survey shows that KBC saw the outflow rise by 50 percent last year. At BNP Paribas Fortis, the number of repayments increased by 11 percent and the amount by 21 percent, and at Belfius by 7 and 19 percent respectively. ING also reports a larger outflow. Argenta says it does not want to draw that conclusion.
Those wishing to save for a pension are usually given a choice of two products: the pension savings fund and the pension savings insurance. The survey shows that more and more people are opting for a pension savings fund. At KBC, the number of new contracts for a pension savings fund rose by 40 percent, while the number for insurance fell by 24 percent. 91 percent of new savers opted for a fund, and barely 9 percent for insurance.
Different funds
Why are retirement savings funds so popular? For starters, you can withdraw your capital at any time (after your 60th birthday). That is not the case with a pension savings insurance. With that savings product you have to take into account a maturity date. With many insurers, this is your 65th birthday.
With a pension savings fund, your capital is invested in various assets, depending on your risk profile. For example, a dynamic pension savings fund mainly invests your capital in equities, while a defensive fund prefers bonds, among other things. Many banks offer you a choice of three types of pension savings funds: defensive, neutral and dynamic.
Branch 21 insurance loses popularity
Branch 21 insurance has long been a popular pension savings product for insurers. This pension savings insurance is intended for savers who do not want to take many risks. To start with, you benefit from a capital guarantee. In addition, the income consists of a guaranteed interest rate and a possible profit share.
Door the ECB’s low interest rate policy In recent years, the revenues from branch 21 insurance have indeed fallen systematically. As a result, more and more insurers are opting for branch 23 insurance. That is actually the insurance alternative to the pension savings fund of the banks. With that product you do not enjoy a capital guarantee or guaranteed interest rate. As with a pension savings fund, the return depends on the underlying assets.
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