APG strong in collective and solidary pension

Our mission is to realize a good pension at affordable cost for as many participants as possible. APG firmly believes that participants benefit from a collective pension system. We support this pension system with our knowledge and expertise, aiming to realize a good, affordable collective pension that will remain reality for both current and future generations.

Individual pension

A purely individual pension account often leads to higher costs. In the first place, because this forces participants to make their own investment choices. In reality, many investors make decisions on emotional grounds, causing too many transactions. This results in higher transactions costs. Another cost-increasing aspect of an individual system is that most people need investment advice in order to determine how best to invest their pension capital.

Interest and return

Missed return is also a cost item. The risk sharing system within a pension fund allows taking a higher investment risk than in an individual pension savings account, based on an equal risk profile. Being able to accept higher risks generally equates to a higher probability of higher returns. Spreading the risk between participants and generations also increases the probability of higher returns. An individual savings account must be converted into a payment for life based on annuity at retirement date. The amount of this payment depends on the risk-free rate. If this rate is low, the payments will be low.

Collective system

In a collective system, this conversion is not implemented; instead, the capital remains invested as part of the collective investment capital. The asset mix is the same for everyone, including retired employees. This allows pension amounts to continue generating returns. Collective investment also provides access to international specialist investment options. Additionally, lower costs can be negotiated for worldwide transactions and the automation investments are lower.


Mandatory solidarity in the pension sector comes in the form of collectivism. Within this collectivism, various groups are solidary, for example young and old, active participants and retired employees and deferred participants, and single persons with married persons (in the event of mandatory surviving dependants’ pension). Collective pension schemes offer major benefits compared to individual schemes. The provision costs are significantly lower and mandatory risk sharing means that the large group of participants - the collective - benefits on average. At a macro-economic level, the benefits of the collective seem to more than compensate for the disadvantages.

Pension funds provide pension schemes based on collectivism and risk sharing. Providing pension schemes is based on cost efficiency. APG does not aim for profit maximization. This aspect discerns us from most other financial service providers. We use the profit to maintain our organization’s financial health.

Your pension articles


Reader explanation | share your reader

This is your personal reader page where you can collect and save the articles you are interested in. Please log in to access your reader everywhere you are. You are not logged in, therefore your articles will only be saved for this session.

Login by your Twitter or your Facebook or your LinkedIn account

Print the reader