How does fund selection work in occupational pensions?

An employee is offered the opportunity to choose how the occupational pension is managed. They can choose between traditional insurance, where the pension company manages the money, or unit-linked insurance, where the employee chooses the funds in which to invest the capital.

When it comes to choosing a fund for an occupational pension, there are several options that affect the size of the pension in the end. One of the most important factors to keep in mind is the risk level of the funds. The levels fall into three categories: low risk, medium risk and high risk. Depending on the level you choose, your capital has more or less opportunity to grow.

When saving in funds, a fee is added. This fee varies depending on the funds in which the occupational pension is invested. For a lucrative fund savings, it is therefore an advantage to review the additional fee when choosing a fund for your occupational pension.