What is Self Investing?
In your pension scheme money is put aside for you for the moment you stop working. You use this money to buy a pension benefit at your retirement age from an insurer of your choice.
The money is invested until you retire. If you make no other choices, your pension capital will be invested by default via the Smart Standard. LifeSight uses the Smart Standard to ensure that your investments match your age, your salary and your retirement age.
In the Smart Standard we invest for you in the following funds:
- The Rendement Fund
This fund invests in a basket of different investment funds with the aim of achieving a good return at an acceptable risk. Investments are made in stocks, real estate, emerging market debts and credits.
- The Matching funds: Long and Short
As you get older and closer to your retirement age, you will invest more and more in the Matching funds. In these funds you invest in government bonds. The purpose of these funds is to minimize the risk of setbacks so that you can purchase the pension you expect.
Setbacks can arise if interest rates fall or prices rise (inflation) in the period before your retirement date. In case of a lower interest rate, insurers ask more capital for the same pension benefit. The purchase of a pension benefit is more expensive in case of a lower interest rate. And with increasing inflation, you can buy less with the same pension benefit, because everything becomes more expensive.
The Matching Funds offer you protection, because the return is linked as much as possible to the rate that insurers use to convert your capital into a monthly payment. We also ensure that your capital moves with the development of prices. If prices rise, your capital will increase and you can purchase a higher pension benefit from an insurer.
It is possible to invest differently than based on the Smart Standard. One of the possible choices is Self Investing. If you choose Self Investing, you no longer invest on the basis of the Smart Standard. LifeSight then no longer ensures that your investments match your age and salary, but you put together your own investment mix. You can choose from the investment funds that LifeSight offers.
Whether Self Investing is available to you depends on the agreements your employer has made with us about this. You can find these agreements in the pension rules. On your participant portal – MijnLifeSight.nl – we only show the choices you can make. It is possible that your employer has not agreed on Self Investing. If this is the case, then you cannot choose Self Investing.
Who is Self Investing intended for?
Self Investing may be suitable for you if you have knowledge of investing and you want to take control of your investments yourself. This is interesting if you expect to be able to achieve a higher return by choosing which funds you invest in.
Note: The risks of investing are yours and you choose the investment mix yourself. The risk of your chosen mix is not automatically reduced as you get older and approach your retirement age. If you choose for Self Investing, we advise you based on a questionnaire on whether Self Investing fits you. When choosing or changing your investment mix, LifeSight determines whether the risk you can and want to take, fits the chosen investment mix.
Why choose Self Investing?
- You decide for yourself in which investment funds, from the choice that LifeSight offers, you invest.
- You may be able to achieve a higher return than with the Smart Standard or Smart Investing.
- You can choose two different investment allocations within the investment funds offered: one for your current capital and one for your future contribution.
- You are free to select other funds in which you invest in the meantime.
- You are free to stop Self Investing in the meantime and to start investing on the basis of Smart Investing.
- You need knowledge of investing to be able to estimate the risks. You will not receive advice from LifeSight.
- Your investments are no longer automatically adjusted based on your age and salary. The reduction of the risk towards your retirement date therefore does not happen automatically. You are responsible for this yourself.
- You may be able to achieve a lower return than with the Smart Standard or Smart Investing.
- You cannot go back from Self Investing to the Smart Standard.
- You take a greater risk of a lower purchasing power of your pension if:
- the investments fall, and/or;
- the interest rate falls in the last years before your retirement date, and/or;
- the prices rise in the last years before your retirement date.
- You cannot invest in funds other than those selected by LifeSight.
- You cannot combine Self Investing with Smart Investing, the Pension Stabiliser or preparing for a variable benefit. For these choices, see the information on this website.
- You are responsible for ensuring that the risk of your investments matches your personal situation (risk profile). When you choose Self Investing, LifeSight determines whether the risk you are willing and able to run is appropriate for the chosen investment mix. If this is not the case, we will suggest an alternative.
When is Self Investing suitable?
There are advantages and disadvantages to choosing Self Investing. Whether it suits you depends on what you find important. And your financial situation, now and in the future.
Below you can see in which situations Self Investing is or is not suitable for you.
- If you have knowledge of investing and can properly assess the risks.
- If you want to choose which investment funds you invest in.
- If you expect to receive not enough income after your retirement and expect to be able to achieve a higher return by choosing which funds you invest in.
- If you want to take little investment risk for a short period by investing partially or fully in the BlackRock Institutional Euro Liquidity Fund.
- If you have no knowledge of investing and cannot properly assess the risks.
- If you want the risk of your investments to be reduced automatically as you get closer to your retirement date.
- If you want to continue to invest based on the Smart Standard, with which LifeSight ensures that your investments match your age, your salary and your retirement age.
- If you do not want to take any responsibility for the investments and want to leave the responsibility for the investments as a whole with LifeSight.
- If you already want to prepare the mix of your investments for a Variable Pension.
What other options are there for your investments?
If you want to increase your expected pension income or if you want to choose for more certainty by accepting a lower expected pension income, you can also adjust the investment risk in other ways.
- By choosing Smart Investing and choosing a higher or lower expected income. In contrast to Self Investing, the risks are automatically reduced as your retirement date approaches.
- By continuing to invest on the basis of the Smart Standard or Smart Investing, while choosing for preparing for a variable benefit. We then phase out the investments in the Rendement fund later and more slowly. This increases the chance of a higher return. Unlike Self Investing, the risks are automatically reduced as your chosen retirement date approaches.
- By continuing to invest based on the Smart Standard or Smart Investing, while choosing a different retirement age. We then phase out the investments in the Rendement fund from a different time and at a different speed than on the basis of the standard retirement age. Unlike Self Investing, the risks are automatically reduced as your chosen retirement date approaches.
- By choosing the Pension Stabiliser, in case you want to take less or no more investment risk. You then no longer invest in shares and other investments with a higher risk with the aim of a good return, but you are protected against falling interest rates or rising inflation.
How do you choose Self Investing?
If you do not make a choice, we will invest for you on the basis of the Smart Standard.
On the Dashboard of MijnLifeSight you can adjust your investments via the arrow “Adjust investments” in the tile “Your pension investments”. Via the button “What choices do you have?” you can then open the selection menu for Self Investing. Whether this drop-down menu is displayed depends on whether your employer has included Self Investing in your pension scheme.
In this menu you can choose the investment allocation of your accrued capital and of your future contribution (if you have not left your employer’s employment). We show you your investments before and after your choice before you confirm your choice.
Subsequently, a questionnaire is used to test whether the chosen investment allocation within Self Investing is suitable for you based on your risk profile.
If you submit the choice for Self Investing no later than a few working days before the end of the month, this change will be processed in the following month. If you wish, you can switch to Smart Investing or the Pension Stabiliser at any time later via the menu described above.
When does your choice for Self Investing stop automatically?
If you have chosen for Self Investing, you will continue to invest on the basis of the selected investment allocation within Self Investing until you retire. Even if you leave your employer before your retirement date, you will continue to invest in the same funds. Only the distribution chosen for your future premiums is then no longer applicable.
The selected investment allocation within Self Investing is therefore only automatically terminated when you retire. At that point, all your investments will be sold.
How do you stop Self Investing?
You cannot go back from Self Investing to the Smart Standard. You can, however, switch to Smart Investing at any time or, if your employer offers this, to the Pension Stabiliser.
On the Dashboard of MijnLifeSight you can adjust your investments via the arrow “Adjust investments” in the tile “Your pension investments”. Via the button “What choices do you have?” you can submit the change.
We are pleased to assist you with your retirement choices. Those choices can have major financial implications. Our guidance is only about your pension plan with LifeSight. Whether a choice is right for you naturally depends on your entire personal situation. Now and in the future. Have you thought about asking an advisor? They can give you an overview of all your financial affairs. And help you make the most appropriate choices.