The impact of the virtual integration of assets on pension risk preferences of individuals

People are increasingly confronted with individual choices regarding the financing of their pensions. This requires complex risk and return decisions on various investment products. The chance of making wrong choices can be reduced by offering multiple investment products integrated in an interactive tool. Especially when multiple risky products are offered integrated, people benefit from this: they often choose a mix that fits well with their personal risk profile.

Key message for the sector

• Virtual integration of various investment products using an interactive tool helps people make better investment decisions.
• Virtual integration is especially helpful if consumers have multiple risky investments.
• This allows pension funds to develop a customized investment strategy by using the risk-return profiles that participants determine themselves.