Life-Cycle Pension Fund
The Life-Cycle Pension Fund (MKPS) provides everything that Capital Mutual Pension Fund does and even more.
The Modri Umbrella Pension Fund (MKPS) is a life-cycle fund that undoubtedly provides an optimal way of saving money at different stages of life. The main purpose of saving in this fund is to guarantee your financial security after retirement.
The distinguishing feature of a life-cycle fund is that, as you age, you travel through the entire ‘life-cycle’ of the fund (i.e. through the three sub-funds), which guarantees optimal returns on invested assets. Ideally, this means that a person who starts saving for a supplementary pension when they get their first job begins by paying into the Dynamic Sub-Fund and then, as they grow older, moves on to the Prudent and finally the Guaranteed Sub-Fund.
Why invest in the Umbrella Pension Fund?
Saving in a life-cycle fund has certain advantages over other forms of saving for a supplementary pension:
• Saving in the MKPS reduces your income tax;
• It allows monthly payments;
• It adapts to your age and your needs at different stages of life;
• It allows you to achieve higher returns and thus a higher supplementary pension;
• It allows you to achieve higher savings with lower amounts;
• It guarantees the long-term security of your savings.
The Modri Umbrella Pension Fund thus provides you with a choice you have never had until now.
What does the pension fund offer?
Flexibility and potentially higher returns.
The Umbrella Pension Fund comprises three sub-funds with different investment policies. To ensure maximum savings, it is best to leave the management of your supplementary pension savings to experienced professionals who will manage your funds so that you get the most from your investment. Modra zavarovalnica employs a team of experts who will take care of everything for you with utmost care and diligence.
The Dynamic Sub-Fund
This sub-fund has the most aggressive investment policy for the highest returns. It is intended for those who have the longest way to go before retirement and can therefore afford to take greater risks.
It is suitable for persons under 50.
The Prudent Sub-Fund
This sub-fund has a more relaxed investment policy and is intended for those belonging to the middle age group, who are comfortable with taking a moderate risk for higher returns.
It is suitable for persons between 50 and 60.
The Guaranteed Sub-Fund
This sub-fund has the most conservative investment policy and provides a guaranteed return. It is intended for those who are very close to retirement and will begin to use their savings shortly.
It is suitable for persons over 60.
If you are particularly cautious by nature, the Umbrella Pension Fund allows you to decide for yourself which sub-funds you want to invest in within a particular period. You can change your decision completely free of charge once per year and switch to one of the other two sub-funds. The only restriction is your age.
Risk and returns
Practice has shown that saving in funds with an aggressive investment policy is not all that risky in the long term, as the fluctuations of economic cycles always level out over the years. If you still have a long way to go until retirement, you can easily assume greater risks in your supplementary pension investments and achieve higher returns in the long term.