2023-09-22 09:51:45
Update
September 22, 2023
11:51
Pension funds posted an average return of 4.5% in the first half of the year, following plunging into negative territory in 2022.
After deploring negative returns in 2022, Belgian pension funds recovered in the first half of the year. They display a average yield of 4.5%thanks to a strategy aimed at long-term investments in the real economy, announces a press release from PensioPlus, the umbrella organization of occupational retirement institutions (2nd pillar).
Long-term, over a period of 40 yearsthe results are also positive, with an average nominal yield of 6.1%, i.e. 3.9% following inflation.
“Pension funds offer solid long-term protection of purchasing power once morest inflation“, comments Ann Verlinden, CEO of PensioPlus. “100 euros invested in 1985 represent today – following applying the historical average returns of the sector – 464 euros in real terms (951 euros in nominal terms). So, in real terms, you get back almost five times your deposit,” she continues.
“The sector remains solidly financed and sufficiently armed once morest future fluctuations in the financial markets (…).”
A “solidly financed” sector
Pension funds must always ensure that you maintain sufficient assets to cover their pension commitments. The average funding level of the sector has recovered thanks to the positive returns obtained as well as the recovery measures taken by certain funds.
“The sector remains solidly financed and sufficiently armed once morest future fluctuations in financial markets and is, as such, a solid partner in the financing and management of supplementary pensions, even in difficult market conditions like those we experienced last year”, concludes Jan De Smet, president of PensioPlus.
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