13 Jul MULTI-FUNDS – THE NEW MODEL FOR MANAGING PENSION SAVINGS
The new model for managing your assets in a universal pension fund will enable you to choose the investment strategy for your pension savings yourself. Members will be able to opt for a dynamic, balanced or conservative sub-fund depending on their age, investment horizon and willingness to take on investment risk.
Find out about the key benefits of contributing to a universal pension fund, the options for choosing a sub-fund, the deadlines and procedures for making this choice, and the inheritance of accumulated funds.
Transition to a multi-fund model
From 1 January 2027, a new model will be introduced for supplementary mandatory and supplementary voluntary pension schemes, which will give insured persons the opportunity to choose between different investment strategies within the universal pension fund.
Choice between three types of sub-funds according to risk profile
Those insured under a universal pension fund will be able to choose between three sub-funds depending on their investment horizon and their willingness to take on investment risk.
- Dynamic sub-fund – invests up to 90 percent of its assets in equity securities (e.g. shares) and is suitable for individuals up to the age of 50.
- Balanced sub-fund – invests up to 55 percent of its assets in equity securities (e.g. shares) and is intended for individuals aged over 50 up to three years before their retirement age.
- Conservative sub-fund – investments in equity securities (e.g. shares) are limited to 25% with the aim of preserving accumulated funds. The sub-fund has a low-risk investment profile and is aimed at individuals who have three years or less remaining until they reach retirement age.
Deadlines for selection and automatic allocation
Individuals who are already enrolled in a universal pension fund may submit an application to select a sub-fund between 1 September 2026 and 30 October 2026. Newly enrolled members have the option to make a selection within three months of the date on which their obligation to contribute arises.
If you have not chosen a sub-fund, you will be automatically allocated to one based on your age. Those aged up to 50 will be allocated to a dynamic sub-fund; those aged over 50 up to three years before reaching retirement age will be allocated to a balanced sub-fund; and during the final three years before retirement, they will be allocated to a conservative sub-fund.
The benefits of contributing to a universal pension fund
The multi-fund model offers the option to choose an investment strategy with the potential to achieve higher returns and accumulate more funds for your pension. Regardless of the sub-fund you choose, the funds in your individual account are your personal property and are not subject to enforcement proceedings. They are managed in accordance with strict regulatory requirements, are guaranteed up to the gross amount of the pension contributions paid, and are inherited in accordance with the Inheritance Act.