Risk profiler and Fund selection form Pension scheme with Index of Profile Mix Fund type of investment

Transcription

1 Personal Pension Plan Risk profiler and Fund selection form Pension scheme with Index of Profile Mix Fund type of investment With this form, you can determine your risk profile and submit your selection of investment funds within your Personal Pension Plan. Please read this explanation carefully before you fill out this form. You need this form if: we are currently investing for you in a life cycle. However, from now on you would like to make a choice from the available investment funds yourself. We call this Personal Investment. or: you have already chosen your investment funds yourself and would like to change your previous selection of funds. You do not need this form if: you are investing in life cycles and want to continue to do so. Or you have chosen your investment funds yourself in the past, but would now like to switch to investing in life cycles. In these cases you can determine and submit your risk profile at Mijn Delta Lloyd ( Subsequently, you can submit in which life cycle you want to invest. On Mijn Delta Lloyd, you will find the risk profiler in the Income planner, within Pension Services Online. or: you have previously opted for Personal Investment and you do not want to adjust your investment funds at the moment. However, it is wise to determine your risk profile regularly to determine if your investment choices still suit you. After determining your risk profile, you might want to invest in the corresponding life cycle. You can submit this choice online, on Mijn Delta Lloyd. There, you go to Pension Service Online, and choose the Income planner. Can I choose Personal Investment? In layer 1 of Pension you can see if Personal Investment is an option within your pension scheme. You can find Pension if you log on to Mijn Delta Lloyd. You can also ask your employer. If you opt for Personal Investment you can choose from the investment funds available within your pension scheme. This means you do not opt for investing in a life cycle. You know and understand the risk of Personal Investment. How do I use this form? This form consists of two parts. The first part is the risk profiler. By answering the questions you will determine your personal risk profile. Subsequently, you can make your choice from the investment funds available within your Personal Pension Plan. You submit this choice in the second part of the form: Fund selection form. Have you answered all the questions, determined your risk profile and indicated your choice? Then check if you have duly completed the form and sign it, before sending it to Delta Lloyd. Postbus /10

2 Part 1 Risk profiler What is the risk profiler? You accrue pension through investment. The more risk you take with your investments, the higher your expected pension will be. But the extremes in your expected pension are also greater. Your expected pension will be lower if the investment returns are poor and higher if the investments perform well. The less risk you take, the smaller the pension you can expect, but the variation in the potential pension will also be less extreme. With this risk profiler you determine your personal risk profile in three steps. You do this by answering a number of questions. The risk profile consist of questions about the period in which you accrue pension and questions about the period in which you receive your pension benefit. You will also be asked questions about your knowledge of and experience with investing. Your risk profile provides insight to what extent you are able and willing to run while accruing and receiving pension. If you want to choose Personal Investment, you are required to fill out and send the form to Delta Lloyd. This is also required if you already chose your investment funds yourself and you want to adjust the investment funds. Step 1: Answer the questions below Please answer the questions below by choosing one answer per question. Each answer is attributed a number of points. While filling out this form, you add these points at the intermediate results. These intermediate results will allow you to determine your personal risk profile. 1. How much risk are you willing to take with investments for your pension? A. less than average 5 B. average 10 C. more than average Suppose the value of the investments for your pension suddenly falls very sharply because of poor investment results. How would you react? A. I would have sleepless nights. 5 B. I would be upset, but I realize that it can happen. 10 C. I would sleep as soundly as ever. 15 Intermediate result 1 risk appetite prior to retirement date Add the points of your answer to questions 1 and 2: 3. You can continue investing for your pension even after your retirement date and therefore continue to benefit from good returns on the investments. Would you choose to do so? Your pension benefits could then rise or fall every year. The less risk you take, the smaller the extremes in the results. Your pension benefits will fall less sharply if the investments perform poorly, and rise less quickly when the investments perform well. By taking less risk, however, your expected pension will be lower. How much investment risk are you willing to take after your retirement? A. None, I want a fixed pension. 0 B. I am willing to take a little investment risk. 5 C. I am willing to accept average investment risk. 10 D. I am willing to accept more than average investment risk Suppose you have retired and your pension benefits decline. What effect would that have on you? A. I would not lose any sleep over it. 20 B. I would not like it, but worse things can happen. 10 C. I would be worried. 5 D. I don t even want to think about it 0 Intermediate result 2 risk appetite after retirement date Add the points of your answers to questions 3 and 4: Postbus /10

3 5. How much knowledge and experience of investment do you have? For example, investing in shares and bonds. A. little or no knowledge and experience 0 B. a reasonable amount of knowledge and experience 5 C. a great deal of knowledge and experience Investment risk can cause your pension to rise or fall. Do you understand that? A. I find it difficult to understand. 5 B. I understand it, but I couldn t explain why. 12 C. I understand completely. 15 Intermediate result 3 Knowledge of and experience with investing Add the points of your answers to questions 5 and 6: 7. Suppose your investments perform poorly and your pension will be lower or a lot lower than expected. Can you compensate for your loss of pension before your retirement? For example by saving more or continuing to work for longer? A. It will be difficult for me to make up the loss of pension. 10 B. I can make up the loss of pension. 20 C. I don t need to make up the loss of pension because I will have sufficient income later. 30 Intermediate result 4 risk-bearing capacity prior to retirement date Write down the points of your answer to question number 7: 8. When you retire, your income will consist of a number of components. This pension is one of them. Will you need this pension to make ends meet? A. I will need this pension to make ends meet. It will be difficult, even with this pension. 0 B. I will need this pension to make ends meet. With this pension, it will be easy. 5 C. I will just be able to make ends meet without this pension. 10 D. I will be able to live comfortably even without this pension Suppose you have retired and continue to invest part of your pension. The investments perform poorly and your pension falls sharply. Could you then still make ends meet? A. I would not be able to make ends meet. 0 B. I would have difficulty making ends meet. 5 C. I could manage by spending less. 10 D. I would have sufficient alternative income to manage. 20 Intermediate result 5 risk-bearing after retirement date Add the points of your answers to questions 8 and 9: Postbus /10

4 Result risk profile Step 2: Determine your score With the intermediate results you can determine three scores (A, B and C). Based on these scores you can determine your risk profile. Scores on intermediate results 1 and 4: Do you have up to 10 points for an intermediate result? Then fill in 1 point below (risk profile Defensive). Do you have between 11 and 29 points for an intermediate result? Then fill in 2 points below (risk profile Neutral). Do you have 30 points of more for an intermediate result? Then fill in 3 points below (risk profile Offensive). Intermediate result 1 Intermediate result 4 (1, 2 or 3 points) (1, 2 or 3 points) Take the lowest score of the intermediate results 1 and 4 above and fill this in at A. A Score on intermediate result 3: Do you have up to 10 points for an intermediate result? Then fill in 1 point below (risk profile Defensive). Do you have between 11 and 29 points for an intermediate result? Then fill in 2 points below (risk profile Neutral). Do you have 30 points of more for an intermediate result? Then fill in 3 points below (risk profile Offensive). Intermediate result 3 (1, 2 or 3 points) PLEASE NOTE! Did you fill in 3 points at A and is your score at intermediate result 3 just 1 point? Then you have to fill in 2 points at B. In all other cases, you take over the score of A at B. Scores on intermediate results 2 and 5: Do you have 0 points for an intermediate result? Then fill in 0 points below (reduce investment risk to a fixed pension benefit). Do you have between 5 and 10 points for an intermediate result? Then fill in 1 point below (reduce investment risk to 15% towards your retirement date). Do you have between 11 and 29 points for an intermediate result? Then fill in 2 points below (reduce investment risk to 30% towards your retirement date). Do you have 30 points or more for an intermediate result? Then fill in 3 points below (reduce investment risk to 45% towards your retirement date). B Intermediate result 2 Intermediate result 5 (0, 1, 2 or 3 points) (0, 1, 2 or 3 points) Take the lowest score of the intermediate results 2 and 5 above and fill it in at C. C PLEASE NOTE! The score at C may not be higher than the score at B. For example: your result at B is 2. And the lowest score at C is 3. Then you round down your result at C and you fill in 2. Postbus /10

5 Step 3: Determine your risk profile Determine which investment risk suits you on base of the score at B. Number of points at B Investment risk 1 Defensive 2 Neutral 3 Offensive Determine which risk reduction suits you on base of the score at C. Number of points at C Risk reduction 0 Risk reduction to 0% at retirement date (fixed pension benefit) 1 Risk reduction to 15% at retirement date (defensive) 2 Risk reduction to 30% at retirement date (neutral) 3 Risk reduction to 45% at retirement date (offensive) Risk profile My risk profile is Investment risk: with Risk reduction: PLEASE NOTE! Your end result shows you how much investment risk you are able and willing to take with your Personal Pension Plan. The risk profile assumes what suits you if you should invest according the corresponding life cycle. The appendix gives you more information about the risk profiles. Check if you can identify yourself with the description of the risk profile that corresponds with your total score. Do you agree with the determined profile? And do you still want to choose your investments funds yourself? Then continue to part 2 of this form. There you can indicate in which funds you want to invest. Postbus /10

6 Part 2 Fund selection form With this part of the form you choose in which investment funds you want to invest ( Personal Investment ). Please read this explanation carefully before you fill out this form. With Personal Investment you are personally responsible for the investments. You run a greater risk of not reaching the desired pension capital on your retirement date. You are also personally responsible for the risk reduction as your retirement date approaches. And you bear responsibility for matching the investments with the risk you are able and willing to run after your retirement date. You risk not sufficiently covering the interest rate risk you run when purchasing your pension benefit. More information on your investment options within the Personal Pension Plan you will find on deltalloyd.nl/ investing-for-pension. Investing after your retirement date You can continue investing with a part of your pension after your retirement date. You can match the risk reduction of the investments towards your retirement date by choosing a life cycle accordingly. Do you choose Personal Investment? Then it is your own responsibility to match the level of risk before and after your retirement. Pension Stabilizer On your retirement date, you use your accumulated pension capital to purchase a pension benefit. The amount of pension benefit depends strongly on the market interest rate on your retirement date. The Pensionstabilizer gives you more certainty of the amount of benefit. If the interest rate is low, your pension is more expensive. You will therefore need more money to buy the same pension benefit. The Pension Stabilizer consists of investments which rise in value as the interest rate falls, and vice versa. Spreading your investments Try to spread the investment risk as much as possible when choosing the investment funds. For instance, you can do so by choosing different investment categories. Costs of Personal Investments Purchase and selling costs We can charge purchase and selling costs for changes in your investment funds. In layer 2 of Pension you can read if we charge these costs and how high these costs are. Fund costs With Personal Investment, you can choose the investment funds with a desired expected returns and risk balance. This can entail higher fund costs than investing in a life cycle. You find more information on deltalloyd. nl/investing-for-pension, under the type of investment of your pension scheme. Please note: some investment funds have a performance fee. Investment guarantee and guarantee premium Delta Lloyd offers an investment fund with investment guarantee: NN Profiel Mixfonds 1. If you choose this investment guarantee, then you will get at least your invested premium back. You can also choose for investment in the NN Euro Rente Fonds U with 2% yield. This yield is guaranteed if you invest in the NN Euro Rente Fonds U at least 10 years Delta Lloyd charges a premium of 3% of the investment for this guarantee. This guarantee premium will not be invested. You do not receive an investment guarantee on this guarantee premium. Postbus /10

7 Type of amendment Tick one of the following options: I want to submit my choice of funds for my future premiums. I want to sell my existing investments in full or in part and invest in other funds. I want to sell my existing investments in full or in part and also invest my future premiums in other funds. Complete column A Complete column B and C Complete column A, B and C * note on fund selection You may invest in a maximum of 10 funds. For more information about the available investment funds go to www. deltalloyd.nl/investing-for-pension, and look at the funds for the Index and Profile Mix Fund type of investment. - Indicate under A how you want to distribute your future investments over the funds (total under A is 100%). - Under B indicate first whether you are submitting the order in percentages or units. - Indicate under C how you wish to distribute the value you made available by B over the other funds (total under C is 100%). Fund selection* Category A Investment B Sale C Purchase (%) % units (%) Lifecycle funds NN Index Mixfonds 1 NN Index Mixfonds 2 NN Index Mixfonds 3 NN Profiel Mixfonds 1 NN Profiel Mixfonds 2 NN Profiel Mixfonds 3 NN Profiel Mixfonds 4 NN Profiel Mixfonds 5 NN Pensioenstabilisator 1 NN Pensioenstabilisator 2 NN Pensioenstabilisator 3 NN Pensioenstabilisator 4 NN Pensioenstabilisator 5 NN Pensioenstabilisator 6 NN Pensioenstabilisator 7 NN Pensioenstabilisator 8 NN Pensioenstabilisator 9 NN Pensioenstabilisator 10 NN Pensioenstabilisator 11 NN Pensioenstabilisator 16 Share funds NN Europees Deelnemingen Fonds P NN Equity Investment Fund NN (L) Global Equity Impact Opportunities M Cap EUR Postbus /10

8 Fund selection* Category A Investment B Sale C Purchase (%) % units (%) NN Europa Duurzaam Aandelen Fonds NN (L) Global Sustainable Equity M Cap EUR Mix funds NN Wereldwijd Mix Fonds Triodos Sustainable Mixed Fund R Dis Bond Funds NN (L) US Factor Credit NN Euro Rente Fonds U NN Euro Rente Fonds U (2% guarantee - 3% premium) Real estate funds NN (L) Global Real Estate M Cap EUR Liquidity funds NN Deposito Fonds NN (L) Liquid Eur A Cap Other funds in your pension scheme The percentages under the columns A and C must add up to 100% Your details Policy number Name of employee Name of employer Modification date Amendment date: 2 days after receipt by Delta Lloyd Levensverzekering N.V. Later date: Signature I agree with the risk profile above and the submitted investment choice, and I am aware of the associated risks. Date Signature Name client Send the completed and signed form (appendix excluded) to: Delta Lloyd Levensverzekering N.V. Postbus 1000 Postbus /10

9 APPENDIX: Description of risk profiles You can find extensive information on the various life cycles and the risk reduction within these life cycles on deltalloyd.nl/ investing-for-pension. Defensive 0% Your risk profile indicates that you should invest Defensively. It also indicates that you should reduce your investment risk step by step, until you have no risk, up until your retirement date. The reduction of the investment risk begins generally 20 years You use the investments to accrue a pension capital. You then use this capital to purchase a pension benefit on your retirement date. You are able or willing to assume less risk of incurring a lower pension capital. But you also accept that you then will have less chance of having a higher pension capital in the event of good investment results. Once you retire, you would rather have a pension benefit that remains the same each year. You may also not be able to cope financially if your pension benefit decreases. This is why a fixed pension benefit is most suitable for you. However, a fixed pension benefit means you cannot benefit from the possible advantages of investing. You accept this. Defensive 15% Your risk profile indicates that you should invest Defensively. It also indicates that you should reduce your investment risk step by step, until you have 15% risk, up until your retirement date. The reduction of the investment risk begins generally 20 years date. You are able or willing to assume less risk of incurring a lower pension capital. But you accept that you then will have less chance of having a higher pension capital in the event of good investment results. Once you retire, it is no problem for you if the amount of pension benefit you receive changes slightly each year. This means you can benefit from good investment results. However, your pension benefit can also decline slightly. This is why a variable pension benefit, of which 15% is invested, is most suitable for you. Neutral 0% Your risk profile indicates that you should invest Neutrally. It also indicates that you should reduce your investment risk step by step, until you have no risk, up until your retirement date. The reduction of the investment risk begins generally 20 years date. You are able and willing to maintain a good chance of having a higher pension capital in the event of good investment results. But you are not willing to assume too much risk of having less pension capital than expected. You are looking for a balance between the chance of having a higher pension capital and the risk of a lower pension capital. Once you retire, you would rather have a pension benefit that remains the same each year. You may also not be able to cope financially if your pension benefit decreases. This is why a fixed pension benefit is most suitable for you. However, a fixed pension benefit means you cannot benefit from the possible advantages of investing. You accept this. Neutral 15% Your risk profile indicates that you should invest Neutrally. It also indicates that you should reduce your investment risk step by step, until you have 15% risk, up until your retirement date. The reduction of the investment risk begins generally 15 years date. You are able and willing to maintain a good chance of having a higher pension capital in the event of good investment results. But you are not willing to assume too much risk of having a less pension capital than expected. You are looking for a balance between the chance of having a higher pension capital and the risk of a lower pension capital. Once you retire, it is no problem for you if the amount of pension benefit you receive changes slightly each year. This means you can benefit from good investment results. However, your pension benefit can also decline slightly. This is why a variable pension benefit, of which 15% is invested, is most suitable for you. Neutral 30% Your risk profile indicates that you should invest Neutrally. It also indicates that you should reduce your investment risk step by step, until you have 30% risk, up until your retirement date. The reduction of the investment risk begins generally 15 years date. You are able and willing to maintain a good chance of having a higher pension capital in the event of good investment results. But you are not willing to assume too much risk of having less pension capital than expected. You are looking for a balance between the chance of having a higher pension capital and the risk of a lower pension capital. Postbus /10

10 Once you retire, it is no problem for you if the amount of pension benefit you receive changes each year. But you do want certainty about the most part of your pension, so that you still have the chance of having more pension in the event of good investment results. But you also run the risk of having a lower pension benefit. This is why a variable pension benefit, of which 30% is invested, is most suitable for you. Offensive 0% Your risk profile indicates that you should invest Offensively. It also indicates that you should reduce your investment risk step by step, until you have no risk, up until your retirement date. The reduction of the investment risk begins generally 10 years date. You are able and willing to achieve the highest possible pension capital and you are prepared to incur more risk in order to do so. You are confident that future investment results will be favourable. You also accept that your pension capital may be lower if investments perform poorly. Once you retire, you would rather have a pension benefit that remains the same each year. You may also not be able to cope financially if your pension benefit decreases. This is why a fixed pension benefit is most suitable for you. However, a fixed pension benefit means you cannot benefit from the possible advantages of investing. You accept this. Offensive 15% Your risk profile indicates that you should invest Offensively. It also indicates that you should reduce your investment risk step by step, until you have 15% risk, up until your retirement date. The reduction of the investment risk begins generally 10 years date. You are able and willing to achieve the highest possible pension capital and you are prepared to incur more risk in order to do so. You are confident that future investment results will be favourable. You also accept that your pension capital may be lower if investments perform poorly. Once you retire, it is no problem for you if the amount of pension benefit you receive changes slightly each year. This means you can benefit from good investment results. However, your pension benefit can also decline slightly. This is why a variable pension benefit, of which 15% is invested, is most suitable for you. Offensive 30% Your risk profile indicates that you should invest Offensively. It also indicates that you should reduce your investment risk step by step, until you have 30% risk, up until your retirement date. The reduction of the investment risk begins generally 10 years date. You are able and willing to achieve the highest possible pension capital and you are prepared to incur more risk in order to do so. You are confident that future investment results will be favourable. You also accept that your pension capital may be lower if investments perform poorly. Once you retire, it is no problem for you if the amount of pension benefit you receive changes each year. But you do want certainty about the most part of your pension, so that you still have the chance of having more pension in the event of good investment results. But you also run the risk of a lower pension benefit. This is why a variable pension benefit, of which 30% is invested, is most suitable for you. Offensive 45% Your risk profile indicates that you should invest Offensively. It also indicates that you should reduce your investment risk step by step, until you have 45% risk, up until your retirement date. The reduction of the investment risk begins generally 10 years date. You are able and willing to achieve the highest possible pension capital and you are prepared to incur more risk in order to do so. You are confident that future investment results will be favourable. You also accept that your pension capital may be lower if investments perform poorly. Once you retire, it is no problem for you if the amount of pension benefit you receive changes each year. But you also want to benefit as much as possible from good investment results. You have made a conscious choice to assume a considerable investment risk. This is why a variable pension benefit, of which 45% is invested, is most suitable for you. Postbus /10