The new retirement savings plans created offer retirees new perspectives and advantageous options. Among them, horizon management is a process that makes it easier to manage your retirement depending on your age. So, when you are further away from your retirement, you can take more risks and then moderate the devices at the end of your investment. Explanations.
If you have just subscribed to a retirement savings plan (PER) or if you plan to do so soon, you will surely come across the term “horizon management”. Behind this mysterious term hides a way of delegating the management of your savings, an option that was already available to holders of a Perco. From now on, time-based management is a default option which, except in the event of a voluntary modification on your part, becomes the rule for your savings. Payments on the PER are thus made gradually in order to optimize the return on your savings and secure the sums invested.
Two major criteria are taken into account in securing your savings. Horizon-based management offers the ability to program the allocation of investments based on the time you have left between now and retirement. When this is still a long way off, savings are invested in riskier but profitable products. The closer retirement approaches, the more secure the savings. The retirement age, but also your investor profile, establish the decisions to be made. You can therefore select a “prudent retirement horizon”, “balanced retirement horizon” or “dynamic retirement horizon” profile for investments whose risk indicator fluctuates from 1 to 7.