The importance of a good income after retirement speaks for itself. Preparing a ‘good pension’ is different for every person.
BNP Paribas Asset Management offers three pension products, each with a different risk profile (Stability, Balanced and Growth). Investors can select the product that fits best to their age, knowledge, experience, goals and needs.
Why Pension Investing?
A carefree pension is everyone’s dream. If we look to today’s situation:
- Average pension for each employee in Belgium: EUR 1312 net per month (source: Knack 01/2020)
- Average pension date in Belgium in 2019: 65 year (source: Rijksdienst for pensions)
- Average life expectancy Belgium population in 2019: 82 year (source: Statbel 7/2019)
- Average cost retirement home in Belgium: EUR 59 per day/EUR 1770 per month (source: Agentschap Zorg & Gezondheid (01/2020)
Average pension in total: EUR 1312
Average costs retirement home: EUR 1770
This results into a pension gap of EUR 458
Why should young people consider to start investing for their pension now?
The world is changing as well as the pension landscape. Today people who retire receive a good monthly pension but changes are underway. Recently the age of retirement changed from 65 into 67 years. Legal pension conditions are under construction and the population is aging.
What will the future look like for young people when they are 65 years old?
- Saving-on-saving effect;
- Investors could choose their own ‘investment rhythm’
- Yearly fiscal advantage;
- Local sustainable impact.
Pension system in Belgium
The system is built on four pillars:
| Pillar 1 | Legal pension |
| Pillar 2 | Additional by the employer |
| Pillar 3 | Personal savings with tax benefit (pension or long term savings) |
| Pillar 4 | Personal savings / investment without tax benefit |
BNP Paribas B Pension Sustainable Range belongs to Pillar 3
- Combines direct tax benefit and the perspective of a potential financial comfort at retirement age
- Potential tax benefit of 25% or 30% per year
Investments needed to ensure that we can enjoy our old age
Featured solutions
Pension savings product offer at BNP Paribas Asset Management: BNP Paribas B Pension Sustainable
Three profiles
BNP Paribas B Pension Sustainable Stability
BNP Paribas B Pension Sustainable Balanced
BNP Paribas B Pension Sustainable Growth
The BNP Paribas B Pension Sustainable Range in a nutshell:
| Multi-Asset product | Profiled investment | Active asset allocation |
| Invested in the main asset classes (equities, bonds, cash), with a European focus | Suitable for all investor profiles: Stability (25-35% equities) Balanced (45-55% equities) Growth (65-75% equities) | Active management, limited by strong regulation following a “Quantamental” investment process |
| Sustainability | Optimisation | Main investment characteristics |
| Full integration of ESG criteria Strict exclusion policy towards Sustainability Label | Active management integrated into a portfolio construction tool able to incorporate constraints | Mainly direct lines Derivatives only for FX hedging Max 20% non EUR exposure Min 80% of equity part in Europe Strong European small caps and Belgian biases |
Some of the above guidelines are internal guidelines mentioned for information purposes only and may be subject to change without notice. Please refer to the Prospectus and KIID guidelines for further information. Source: BNP Paribas AM, 31/12/2020.
Sustainability – Febelfin
- BNP Paribas B Pension Sustainable Range has successfully applied for the label, and received it on 7 November 2019. The label was renewed on 8 July 2022.
- As a result, BNP Paribas B Pension was renamed BNP Paribas B Pension Sustainable in April 2020
Label awarded in Brussels on 08/07/2022 by the Central Labeling Agency and valid for one year. More information on the label, see https://towardssustainability.be/products. Obtaining this label by the compartment does not mean that it meets your own sustainability objectives or that the label meets the requirements of future national or European rules. For more information on this subject, see https://www.fsma.be/en/sustainable-finance.
Why us?
BNP Paribas Asset Management is a recognized asset manager in Belgium in the pension investing area.
Our dedicated teams draw on our extensive research capabilities and investment expertise to offer an innovative range of pension products that target two key areas: sustainability and active asset allocation.
In line with our wider investment philosophy, all our pension products seek to deliver long-term sustainable investment returns.
Performance overview:
BNP Paribas B Pension Sustainable Stability
BNP Paribas B Pension Sustainable Balanced
BNP Paribas B Pension Sustainable Growth
Risks
Credit risk: risk of deterioration of an issuer’s signature or of its inability to honor its commitments (default), which could lead to a drop in the value of the bonds in which the product is invested.
Liquidity risk: results from the difficulty in selling a security at its fair value and within a reasonable period of time due to a lack of buyers.
Currency risk: results from the presence of assets denominated in currencies other than the reference currency.
Inflation risk: results from the fact that the returns on short-term investments do not evolve at the same rate as inflation, thus leading to a reduction in the purchasing power of investors.