In our previous blog post we have explained why the pension fund invests the contributions of all participants. But why do we do it collectively, for all participants together? Our board member Rianne Steenbergen and Investment Manager Huub van Berkel explain this in our new blog post.

What is the difference between investing yourself and investing collectively by Mars Pension fund?

Investing by yourself means trying to make returns only for yourself and deciding how much risk you want to take and what you want to invest in. It does come in very handy if you are knowledgeable about it, plus you have to put a lot of time into it for many years and you have to be able to handle the fact that years with better and years with less investment results can alternate. 

Mars Pension fund invests the collective pension assets of all participants of the fund. The goal is to achieve the return needed to provide a good pension for all participants, young and old, now as well as in the future. The pension fund looks at the bigger picture and at the long term. This is how we ensure a good balance between risk and return.

What are the benefits of investing collectively?

There are many different types of investments. Some may make a lot of return quickly, but are also very risky. Others yield a little less, but they offer more security. The pension fund has access to many more types of investments than an individual investor. With advice from specialists, Mars Pension fund can create a sensible mix for your pension. This involves selecting different types of investments and spreading those investments around the world. Of course, these specialists closely follow developments in the financial markets. This allows us to try to spread out better and lesser results, and avoid shocks.

Investing together can also, because of the scale, be cheaper per participant. For example, you can think of lower costs for buying and selling investments and for hiring experts. An additional advantage, when we work as a collective, is that we are able to share mortality and disability risks. This is much cheaper than buying individual insurance.

Good to know

Investing plays an important role in the new pension system. That is why we conducted research last year into what you think about investing and the risks that come with it. We will take the results of this survey into account in our preparations for the new pension plan. 

More information?

Would you like more information about our investments and the agreements made by Mars Pension fund? Have a look at our investment principles on this page.

Do you have a question about investing? Or would you like to know more about something? Let us know! A board member might answer your question next time.