How to understand the profitability of pension savings?

Only in pension funds does your pension savings generate interest that, in the long run, turns into profitability, which is managed in an individual savings account in your name.

In order to know the profitability that the affiliates obtain by the savings realized in the pension funds or how to maximize it, here we highlight the 6 key points that the savers should keep in mind to understand more profitability of their pension savings. Here you can check your account online using uan login.

1. Pension savings is the money that the member accumulates during their working life. It is composed of contributions, profitability and pension bonus (if you are entitled to it).

2. The pension savings are deposited in an individual savings account in the name of each affiliate, and the details of each account can be known through the periodic extracts and the different service channels made available to affiliates and employers, such as as a network of offices, customer service lines and web pages.

3. Savings for your pension accumulate throughout your working life. It is estimated that, on average, the affiliates of the funds have an investment term of 25 years, so they should make their evaluations considering that the pension savings are long term and therefore their profitability should be analyzed in the same time horizon.

4. Historically, the returns on funds have far exceeded the contributions of affiliates. In the last 5 years, affiliates have received more than $55 billion in income. It is estimated that from the current value of the funds, as of October 2016, the affiliates have contributed 39% and have received 61% as a result of the returns.

5. In order to maximize the yields derived from pension savings in pension funds, affiliates can manage their savings, a scheme tailored to each affiliate profile, according to their age, years of contribution and exposure to the risk.

The options contemplate different perspectives of investment and represent different risks and returns: for example, young affiliates, starting their working life and looking for higher returns in the long run, should have their resources in the fund of higher risk offered by the best possible return in the aforementioned time horizon, although with greater exposure to risk by assuming higher volatilities. For people who are in the intermediate part of their working life or with a medium risk profile, there is the Moderate Fund that offers stable profitability without assuming a strong exposure to market risks. On the other hand, members close to pension age and pensioners have the conservative and programmed retirement fund, respectively,

6. The yields of the pension funds translate into greater savings for about 11 million Colombian workers who contribute to the pension system.

On the other hand, the invitation to affiliates to take advantage of the opportunity to decide how to invest their savings is reiterated, since it is their accumulated contributions and returns that, in the long run, make up the pension that will provide them peace of mind in their old age.