The contributions for the ARP/ASP plan are invested. The Mars Pension Fund invests the contributions in the ARP plan for you. You can choose how the contributions in the ASP plan are invested, either using a Life Cycle or your own personal investment mix. So you can make choices that suit your personal pension goals.
From your 58th birthday, you can decide whether the capital in the ASP plan should be used later on for a fixed or a variable pension. This is a provisional choice, and you can change this on your retirement date. But your decision will affect how you will invest from that point going forward.
Investing in the ARP plan
In the ARP plan, you accrue capital in your ARP account. The Mars Pension Fund invests this capital for you. You receive a return from the Mars Pension Fund in this ARP account. We strive to give the highest possible return, but the return is capped at 3% higher than the price index. The return you receive depends on the investment return of the Mars Pension Fund and the decisions made by the Mars Pension Fund in this respect. The return can therefore also be lower.
Investing in the ASP plan
In the ASP plan, you accrue capital in your ASP account. You choose how this capital is invested. You have several options:
- Life Cycles: The Mars Pension Fund arranges for your contributions to be invested. You can choose from two Life Cycles: the Fixed Life Cycle and the Variable Life Cycle. Until you reach 58 years of age, the Fixed and Variable Life Cycles are the same. After reaching this age, the Life Cycles are different.
- Self-directed investing: with self-directed investing, you yourself decide how your contributions are invested. You can choose from the investment funds selected by the Mars Pension Fund. If you choose this option, you must arrange the reduction to fixed/variable pension via the investment mix yourself. This works very differently from participating in the Lifecycles.
Risk and age
In the Life Cycles, the risk of your investments is reduced as you get older. When you are still young, you will invest more in equities. Equities are expected to generate a higher return on average than other investments, such as bonds.
But equities can also lose value. This is an investment risk. This is why the risk of your investments is automatically reduced as you get older. For instance, in bonds instead of equities. The return on bonds is usually lower than the return on equities. But the chance that bonds will suddenly lose value is low. Read more about the risks for your pension.
Choose a fixed or variable pension
You use the pension capital you have accrued to purchase a pension on your retirement date. At that time, you choose either a fixed or a variable pension. You can already make a provisional choice for the capital in the ASP plan when you reach 55 years of age. We recommend you do this not later than on your 58th birthday. This is important, because different investment approaches apply depending on your choice of a fixed or a variable pension. You can also use the Beleggingswijzer to make this decision. We will adjust your investments according to your decision.
Choose the investment approach that suits you
You van do this with the Investments Guide (Beleggingswijzer) in the MyMarsPension planner. The questions here will help you make up your mind. Please note: The investments Guide is an aid. You remain personally responsible for your choice and for the consequences thereof. A financial advisor can help you with your choice.
