Anyone who invests in a pension savings fund does so for 20, 30 or sometimes even 40 years. So it's important to choose wisely.
It's difficult to predict how much income you will get from your savings when you reach retirement age. That depends on factors such as the return on the pension savings fund. Don't just look at the performance in the last few months. Even if the fund of your choice doesn't manage to score better than average each month, that's not necessarily a problem. After all, past performance is no guarantee of future results.
Comparing ways of saving for your pension means more than just comparing returns
It's not a good idea to base your decision on rendement alone. Before you decide, you should also compare costs. There are two types of costs associated with a pension savings fund: entry charges and ongoing charges.
1. Entry charges
Every time you pay into the fund, you pay entry charges. This is a certain percentage that's deducted from your deposit before the money reaches the pension savings fund. Entry charges of 3% are standard for many pension savings funds. In the case of KBC Brussels, these charges are 2%, meaning that more of the money you save actually goes into the fund.
2. Ongoing charges
With a pension savings fund, you also pay ongoing charges. These are basically management and administration fees. They're expressed as an annualised percentage. They're not charged separately, but daily, as part of the price (also known as the net asset value). As a result, they mount up more than entry charges in the long term.
Tip for comparing
Remember that pension savings funds for which no entry charges apply aren't cost fee. Management and administration fees are included in the daily rates. These charges can vary greatly between the various pension savings funds.
You don't normally have to pay exit charges unless you withdraw early. In that case, you pay high tax. If you need your money, you should look for an alternative instead.
Switching to a pension savings fund from KBC Brussels?
You can easily switch from a pension savings fund from another bank to a pension savings fund from KBC Brussels for free. Please contact us.