Pensions as a lever for a forward-looking HR policy

Many employees are increasingly prioritising financial peace of mind. A solid pension plan contributes to well-being, engagement and retention. Younger employees often focus their attention elsewhere, which is precisely where understanding the major difference between their last-earned salary and state pension plays a vital role: after all, starting to build up a pension early on makes a significant difference in the long term.
In other words, pensions are more than just a benefit: they are a strategic HR tool that helps determine how forward-looking and sustainable your workplace policy is.

• 1 in 3 employees has no active supplementary pension¹
• 3 in 4 of these employees have a contribution of less than 3% of their gross salary²
• The median pension capital of recent retirees is 5 000 euros for women and 16 000 euros for men³
  

KBC Pension Fund Solutions meets this need by giving companies access to a professionally managed pension fund that is straightforward and accessible to everyone, including the employee.

Higher potential return
Thanks to professional asset management and a clear long-term strategy, the expected and past returns are higher than those of traditional group insurance with a guaranteed return such as guaranteed-interest life insurance (class 21).
For example: 1% additional return canresult in up to 20% more pension capital in the long term.⁴

Cost-effective and scalable
The multi-employer model combines several companies in a single pension fund, ensuring economies of scale, reduced management fees and increased efficiency, all of which benefit returns.

Comprehensive service and support
KBC takes care of monitoring, administration and regulatory reporting. As an employer, you retain insight and control while maintaining simplicity. We are also committed to clear and transparent communication, ensuring that employees have a clear idea of the financial support you provide as an employer: not only for their pension, but also as additional protection in the event of incapacity for work and death. This enhances both their understanding of and appreciation for this commitment.

Clear HR impact
A modern pension fund strengthens your employer positioning. It demonstrates your commitment to well-being, security and the long term – increasingly important factors in the ‘War for Talent’.

Responsible investing
KBC is committed to socially responsible investing – not by simply following every market trend, but by investing specifically in companies and countries th at act responsibly towards people, the environment and governance. Our aim is to allow you, as an employer, to avoid investing in controversial activities whilst simultaneously contributing to an economy that focuses on sustainable growth and long-term value creation. The younger generation of employees also greatly values this approach.

Recent tensions in the Middle East have again rattled the markets. Rising energy prices, volatile energy and other supplies and renewed inflationary pressures are causing nervousness in the financial markets and uncertain economic times.
Belgian pension funds are specifically designed to withstand economic fluctuations. They look beyond short-term trends and focus on sustainable long-term value creation. This translates into a broad and considered approach:

• Diversified portfolios: shares, bonds, property, infrastructure and alternative investments
• Inflation protection through, for example, index-linked bonds and real assets such as infrastructure (e.g., energy infrastructure) and property
• Active risk management, which involves managers making timely adjustments in the event of market shocks
• Periodic investments in order to spread the timing of investments and reduce timing risks.

This approach has proven effective. Despite crises such as the pandemic, the energy crisis and geopolitical conflicts, the long-term returns of Belgian pensionfunds remain remarkably stable at around 5.5%.⁵

The gap between working-life income and post-retirement income is widening. For many people, the state pension is not enough to cover the drop in income, which can affect their standard of living. For employers, now is the time to critically review and strengthen their pension strategy.
That’s why more and more employers are choosing KBC Pension Fund Solutions as a forward-looking pension solution:

• It allows you to offer your employees a potentially higher return in the long term
• KBC Pension Fund Solutions is synonymous with comprehensive service and support
• Deposits are invested responsibly
  

Find out how KBC Pension Fund Solutions can support your organisation with a forward-looking and sustainable pension policy.