Life is stressful enough as it is. In old age, you finally want to have time and money for the finer things in life: taking smaller trips, going on a cruise, or maybe just supporting the grandchildren with a little pocket money. The state pension system is no longer much help to us with these needs. In Austria, 12.9 percent of pensioners aged 65 and older face the risk of old-age poverty. Compared to 2017, this is an increase of almost one percentage point. The highest value in the period from 2010 to 2018 was 16.1 percent, the lowest in 2017 (12.0 percent)*. Those who rely solely on statutory pension provision run the risk of having too little in old age. That's why it is important to make provisions in good time so that you can maintain your standard of living and look to the future with peace of mind.
* Source: Eurostat and https://www.versicherungsjournal.at/versicherungen-und-finanzen/jeder-achte-pensionist-armutsgefaehrdet-20046.php (data as of February 2020).
The right time is NOW
Retirement is a long time coming - but your returns are not. The earlier you start your retirement planning, the higher your payouts can be at the end of the term. The payout amount in the s Fonds Plan at the end of the planned term depends on developments in the capital markets, which also includes the possibility of capital losses.
Lost time cannot be made up. In our example, Erika starts paying €100 per month into the s Fonds plan at the age of 25 (immediately after starting her career). From the age of 40, she stops paying in and her money remains in the fund until she retires (at age 65). In total, Erika has paid into the s Fonds plan for 15 years. Thomas, on the other hand, does not start looking after his pension until the age of 40 and also pays €100 per month into the s Fonds plan over a period of 25 years until retirement (at the age of 65). Assuming a performance of 4% p.a., Erika has an advantage of €26,380 over Thomas. She has paid in €12,000 less and has generated an additional return of €14,380 from the investment.
So don't waste any time and start your retirement planning today so that you can continue to enjoy life to the fullest in your old age.
Please note that investing in funds involves risks and may result in capital losses. For more information on the specific risks, please refer to the factsheet, the Key Investor Information Document and the prospectus or the information for investors pursuant to § 21 AIFMG.
Note: Depending on the performance of the investment fund, the performance of an s Fonds Plan will differ from that of a single investment (higher or lower). A loss of capital is possible in both cases.
This calculation example is based on figures that are not based on a specific product or real performance and serves only as an illustration. The return to be stated for the financial mathematical calculation does not take into account any expenses and taxes; the result is rounded to the nearest 10 decimal places. All statements of calculation results are made without guarantee. Note: Forecasts are not a reliable indicator of future developments. Please note that investing in funds involves risks and may result in capital losses.
Source: Erste Asset Management GmbH
Our solutions for you
s Fonds Plan Mix
Invest in up to 5 investment funds of your choice. You select the funds at the beginning and then invest a fixed amount regularly (e.g. monthly). You can determine the amount and distribution of your deposit individually.
YOU INVEST GREEN
Simple, transparent, flexible. This is what our new investment concept looks like. Different goals require different investment strategies – our experts take care of the specifics. Do you want to save up for your children’s education, make sure you get a pension once you have retired, or set aside money for your lifetime dream?
s Fonds Plan for regular payouts
Small steps to a big goal. You don't have to be a large investor to make timely provisions. Make flexible monthly provisions now with small amounts (starting at 50€) and get closer step by step to your goal of maintaining your standard of living later. The s Fonds Plan helps you to do this.
Note: Depending on the performance of the investment fund, the performance of an s Fonds Plan will differ from that of a single investment (higher or lower). A loss of capital is possible in both cases.
Do you already have a more precise idea of the type of funds you want to invest in? Our fund list gives you an overview of our products.
Fundlist
Pension Fund
The search here is limited to the funds that explicitly meet the special requirements of the Austrian Pension Fund Act (Österreichisches Pensionskassengesetz) according to their fund terms and conditions.
Fund Category
Equity funds
With equity funds, the fund assets are invested primarily in stocks. Equity funds are as varied as the stock markets themselves. The investment possibilities range from globally investing equity funds to funds that only invest in stocks from certain countries or sectors.
Bond funds
Bond funds invest primarily in debt. Bonds usually offer regular interest payments and the redemption of the invested capital at the end of the term, though funds generally do not hold bonds all the way to their maturity.
Bond funds with short remaining term to maturity
These funds invest in bonds or money market instruments with short maturities.
Mixed funds
Funds that invest in different asset classes (for example in equities and in bonds) combine the growth potential of stocks with the lower risk of interest-bearing securities. The so-called mixed funds usually give the fund managers more investment leeway. When stock prices are stagnating or falling, for example, fund managers can shift capital into interest-bearing securities, or when stocks are performing well, move more capital into these assets.
Investment Region
Here, the fund can focus on a specific region or country, for example on developed markets or on emerging markets.
Bond Focus
The investment fund can focus on a particular bond segment, for example government bonds.
Risk/Holding Period
The recommended (or minimum) holding period is a legally required item of information to be included in the KID. They are determined on the basis of the asset class of the respective fund and its type-specific maturity, including a qualitative assessment in each individual case. It is crucial to understand that the holding period alone do not suffice for a complete picture of any possible risks. They always need to be looked at together with the prospectus, the “Information for investors pursuant to Article 21 AIFMG” and the KID.
Currency Risk
- Yes: The performance of the investment fund can be influenced substantially by currency risks.
- No: The fund enters into no material foreign currency risks, and/or any currency risks that are associated with securities are hedged.
- Subordinated: In order to seize opportunities, currency risks can be accepted to a limited extent. The performance of the investment fund can be influenced to a certain degree by currency risks.
Pension Fund
The search here is limited to the funds that explicitly meet the special requirements of the Austrian Pension Fund Act (Österreichisches Pensionskassengesetz) according to their fund terms and conditions.
Important information:
Please find further information and documents on the respective funds by clicking the fund name in the above overview.
Contact
Do you have questions or would like to get more information?
Your advisor at Erste Bank or Sparkasse is happy to help you.
Interested in financial topics?
Read the EAM Investment Blog!
In Erste Asset Management's investment blog you can find
commentaries and analyses on topics such as Equities,
Sustainable Investment, Eastern Europe/Emerging Markets.
Your money can change the world
Regular income
What is a fund?
Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.
The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to Art 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website www.erste-am.com within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.
The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.
Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to Art 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.