Short employment. Working part-time. Lower wages on average. That characterizes the temporary employment industry. And therefore also a large part of our participants. If part-time work is done, or if the salary is lower, this means a low pension accrual. And so a "small pension" is created. A small pension is a pension pot of up to €10,000,-. At StiPP, more than 90% of the almost 1.2 million participants have a small pension.
The implementation costs at StiPP
StiPP administers the pensions of almost 1.2 million people. These people can be divided into three groups:
- participants currently working in the sector (active participants)
- participants who have worked in the sector and have a pension capital with StiPP (former participants)
- Participants receiving pensions (pensioners)
The pie chart below shows the ratio between these 3 groups within StiPP
Administering the pensions for all these participants costs money. In 2023, a total of 18.8 million euros. The implementation costs at StiPP are therefore an average of € 14.42 per participant.
We try to keep costs as low as possible
Low implementation costs are important
StiPP wants as much pension contribution as possible to be used to build up pension. That is why low implementation costs are important for StiPP. Because the lower the costs, the more pension accrual can take place.
Not only low execution costs, but also low asset management costs
In addition to the costs of implementation, StiPP also incurs costs for investing the pension. In 2023, a total of 7.5 million euros. This is 0.29% of the average invested capital. These costs are deducted directly from the investment return. That is why low asset management costs are also important: the lower the costs, the higher the return. And the more pension!
Costs can be further reduced
The board is working towards lower administration and asset management costs. This can be done, among other things, by further automating and digitizing processes. By communicating online. But also by taking a critical look at what the fund invests in. The board believes that the administration costs should be a maximum of € 15 per participant/pensioner and that the asset management costs should not exceed 0.30% of the average invested capital. The board remains committed to achieving this.
More information about the administration and asset management costs can be found in the annual report.