Building up pension savingss

The pension account balance grows over the years as contributions are paid in under the pension scheme. The Bosch Pensionsfonds invests the contributions using a long-term strategy designed to generate attractive returns.

Investing the contributions

Pension savings are invested in a broadly diversified portfolio across a range of asset classes and global markets with the goal of capitalizing on the return potential that the capital markets offer in the long term while minimizing investment risks.

The way an associate’s contributions are invested evolves over the course of their life. Until the age of 55, maximizing long-term growth and capital accumulation takes priority in the investment strategy. Thereafter, the focus gradually shifts towards preserving capital.



Build-up phase

Focus on high-yield growth

The aim is to optimize the growth of the pension savings by the time associates retire. For associates up to the age of 55, the focus is on generating attractive investment returns. During this phase, the Bosch Pensionsfonds invests its pension assets primarily in equities and alternative investments. While these investments may experience fluctuations in value, their long investment horizon up to retirement generally smooths out this volatility.

Transition phase

Preparing for retirement

In the pre-retirement phase the focus of retirement planning shifts from long-term growth to stability and preserving value. Therefore, forms of investment that offer stable capital appreciation are increased gradually when associates are aged between 55 and 60.

Preservation phase

Focus on preserving value

As an associate approaches retirement, the focus shifts towards preserving accumulated savings. From the age of 60 the accumulated assets are mostly invested in fixed-income securities by the Bosch Pensionsfonds. This approach reduces investment risk and volatility.

Focus on high-yield growth

The aim is to optimize the growth of the pension savings by the time associates retire. For associates up to the age of 55, the focus is on generating attractive investment returns. During this phase, the Bosch Pensionsfonds invests its pension assets primarily in equities and alternative investments. While these investments may experience fluctuations in value, their long investment horizon up to retirement generally smooths out this volatility.

Preparing for retirement

In the pre-retirement phase the focus of retirement planning shifts from long-term growth to stability and preserving value. Therefore, forms of investment that offer stable capital appreciation are increased gradually when associates are aged between 55 and 60.

Focus on preserving value

As an associate approaches retirement, the focus shifts towards preserving accumulated savings. From the age of 60 the accumulated assets are mostly invested in fixed-income securities by the Bosch Pensionsfonds. This approach reduces investment risk and volatility.

Strong performance

Since its establishment in 2002, the Bosch Pensionsfonds has achieved an average annual return of about 6 percent during the return-oriented accumulation phase thanks to its professional, long-term investment strategy. The more preserving investment portfolio has delivered annual returns of just under 4 percent per year. This attractive performance makes the Bosch Vorsorgeplan a strong component of associates’ retirement income.

Pension savings continue to grow even after retirement

The Bosch Vorsorgeplan offers a number of payout options for the pension savings – ranging from one-time payment and installment payments to a monthly annuity. Through the Fondsrente, fund-based annuities specially developed by Bosch, the company’s retirees continue to participate in the Bosch Pensionsfonds’ performance. Thanks to the continued investment of pension assets, the plan has consistently delivered attractive payouts in the past. In this way, Bosch continues to support retirees throughout their retirement.