Employer
Risk research results 2021
In the summer of 2021, LifeSight conducted a survey into the risk preferences of the participants. LifeSight conducts this research to gain insight into the extent to which our participants are willing and able to run investment risks to achieve the expected income on the retirement date. The research into the risk preferences of the participants is carried out by LifeSight once every 2 years. The first study was done in 2019.
The research conducted in 2021 shows that participants are willing to accept – to a limited extent – more investment risks than LifeSight currently assumes. This gives LifeSight the opportunity to slightly increase the risk of the investments. We are currently examining whether a possible increase in the risk of the investments also leads to a higher expected pension under various scenarios. In 2022 it will be clear whether the results of the research will also lead to an adjustment of our investment mixes (lifecycles).
Contribution to the Trees for All Foundation
To encourage participation in the risk research and to contribute to a green and healthy earth, LifeSight will donate an amount to the Trees for All Foundation. The amount of this amount is linked to the number of people who participated in the study.
The questionnaire was completed by 7% of the participants. Based on this, the donation to the Trees for All Foundation is € 350. LifeSight decided to increase the donation to € 500. With this amount 100 trees will be planted.
LifeSight investment approach
With LifeSight you accrue your own pension capital. If you do not make any investment choices, you will be allocated a standard investment mix.
When determining this standard investment mix, we consider how much risk you can take objectively. We call this risk base. The risk base depends on the options you have if the pension outcome will be disappointing. If there is little that you can do at that time, we may take less investment risk. If you can absorb a setback well, we can take a little more risk.
There are 3 options for absorbing a setback: accepting that your pension income will be lower, working longer and saving extra for your pension.
It is of course not the case that we assume that the investment results will be disappointing, because we do everything we can to invest your money in the best possible way. But when determining your investment mix, it is wise to take into account the chance of lower returns.
Results
The results show that people save more, work longer and are willing and able to accept a greater setback the higher their salary. The risk that someone can run therefore depends on the salary. This was also the result of the risk research in 2019. And this also followed from the research we conducted when determining our investment methodology.
The conducted research shows that participants are willing to accept – to a limited extent – more investment risks than LifeSight currently assumes. This gives LifeSight the opportunity to slightly increase the risk of the investments. We are currently examining whether a possible increase in the risk of the investments also leads to a higher expected pension under various scenarios. In 2022 it will be clear whether the results of the research will also lead to an adjustment of our investment mixes (lifecycles).