Pension funds, long regarded as the bedrock of long-term financial security for millions of workers worldwide, are currently navigating an increasingly tumultuous landscape. Traditionally conservative in their investment strategies, these institutions now face a confluence of challenges that demand innovative thinking and strategic foresight.
Environmental concerns, short-term regulatory pressures, and market and geopolitical uncertainties have created a complex environment that tests the resilience and adaptability of pension funds.
Ortec Finance, founded in 1981, stands as one of the most established risk-return technology providers serving the pension fund industry and is uniquely positioned to address the complex challenges facing pension funds and offer innovative strategies for adaptation and growth.
Three of Ortec Finance’s key experts – Marnix Engels, Elske van de Burgt, and Maurits van Joolingen – who collectively have more than five decades’ experience in this field, share their insights on how pension funds are adapting to this new reality.
Pension funds face a complex set of challenges
As populations age, more pensions in developed countries are being paid out. At the same time, there has been a notable decline in the number of active contributors, resulting in fewer incoming payments to replenish the coffers. This demographic shift, coupled with the persistent low interest rate environment, which has compressed returns on traditional fixed-income investments, has created a precarious balance, tipping pension funds towards an asset allocation containing more illiquid investments.
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