Aegon Nederland [AMS: AGN]

Dirk Korbee

Employee Pension Steward

Are pensions dusty and boring? Continue to invest in fossil fuel producers or accelerate the phase-out? Questions that, in addition to the introduction of the new pension system in the Netherlands, are hot topics for Aegon Cappital, but also for HR professionals.

For employers and participants, sustainability and pension activation are becoming increasingly important. There we get questions from new customers, but also from existing customers, about how we arrange this, begins Dirk Korbee, director of Aegon Cappital.

Pension activation is a hot topic

And with the introduction of a new pension system, that will only become more important. The individual pension model that is being introduced in the Netherlands is already better known internationally. “For us, as a Premium Pension Institution, we are already familiar with a form of individual pension accrual and the activation of employees,” explains Korbee.

Activate with on- and offline activations

The Dutch still regard a good pension as the most important fringe benefit. According to research that Aegon Cappital did together with Business Insider. Korbee: “That's right, but still the least appreciated. Unfortunately, there are also very few Dutch people who look into their pensions. You have to fight against negative associations that people have when they think about retirement. Our (unconscious) brain experiences pension words negatively. And that is where we try to make a difference with our customers. We do this with various online and offline activations within our activation proposition AegonCappital@Work”.

AegonCappital@Work is a mix of different activations to address different target groups, such as with a Pension Barista or a Pension Pub Quiz. In 2022, Aegon Cappital gave more than 70 presentations, 40 webinars, and ten workshops to stimulate financial awareness.

“We believe that activation is about two things; applying the right action at the right time for the right target group; and inciting action”

Activation specialists from Aegon Cappital proactively talk to customers and in particular, the HR department, to see what is needed when it comes to activating pension communication. Korbee:

“We believe that activation is about two things; applying the right action at the right time for the right target group; and inciting action. For example, we activate employees to log in to their My Environment to make certain choices and to use the pension planner. With our planner, you can see at a glance what you can expect in terms of pension later and what influence certain life events have on your pension capital. We test the risk appetite with a number of investment questions so that we know exactly how we should invest his or her pension for a participant. One time we do this using an activation mailing and the other time if desired, an activation on location at the customer's office.

A sustainable pension

Two terms that are inseparable these days. Sustainability is also an important topic for more and more people when it comes to building up a pension. In addition to the fact that Aegon Cappital often talks to HR professionals to activate employees, they also talk to organizations to encourage them to become more sustainable.

Some pension funds in the Dutch market, including ABP, opt for the option of phasing out non-sustainable investments. Aegon Capital believes more in the power of dialogue.

However, they are also not tempted to increase their exposure to polluting sectors if prices rise somewhat in a short period. “As a long-term investor, we want to contribute to a sustainable world. Fossil energy is not part of that in the long term,” says Korbee firmly. He points out that climate change is one of the five responsible investment themes that the investment team uses with conviction.

Sustainable and realistic

At Aegon Capital, they make clear choices when they enter into a conversation or when it is not useful. “We do not invest in tar sands and coal-fired power plants, given their impact on the climate and living environment. And our goal is to scale down our interests in the rest of the fossil fuel industry over time. But we are not excluding oil and gas companies just yet,” says Korbee. “We pursue a sustainable, but realistic policy. The world cannot be changed overnight. Unfortunately, the transition to sustainable energy, such as wind turbines, solar panels, and other sustainable alternatives, takes time.”

For that reason, we don't think it makes sense for investors to pull their hands off the sector en masse. If you sell all your interests, you lose contact with those companies, while in that dialogue we want to continue to put the importance and speed of the transition on the table.”

Enter into conversation

Aegon Cappital is convinced that more impact can be made by entering into a conversation. Korbee: “As a pension administrator and investment expert, we call on companies to embrace the transition and to make sufficient resources available for this. Of course, those conversations must yield something. If we notice that a company is digging in its heels, we do not hesitate to say goodbye.”