Gildi expands its range of private pension savings options

Gildi is now introducing a new and expanded product range for private pension savings under the name Eign. The fund will offer five investment paths that allow members to choose between different options depending on expected return, risk, intended investment horizon and asset management priorities. All of the fund's investment paths are available for both private pension savings and designated private pension savings.

New offerings include Eign – Foreign, in which the portfolio is invested entirely in foreign currency; Eign – 70/30, in which 70% of the portfolio is invested in equities; and an automatic age-based path, Eign – Age-based, in which a member's balance is automatically moved between investment paths according to the member's age.

More options and clearer comparison

The new investment paths formally take effect on 1 September, and the changes are intended to increase the options available to Gildi's members and make choosing easier. At the same time, the names of the current investment paths will be changed and aligned under the name Eign, so that their names better reflect each path's asset composition. Framtíðarsýn 1 will be renamed Eign – 50/50, and the path's investment strategy will also be changed so that, on average, around half of the portfolio will be in equities and half in bonds.

Changes to the product range of Gildi's private pension paths and to the names of the investment paths can be seen here:

A particular focus on younger and foreign members

The aim of the proposed changes is, among other things, to respond to the needs of younger members and foreign members and to increase the number of options in private pension savings, for example with a greater weighting of equities and foreign assets than has previously been the case. The fund's new path, Eign – 70/30, which generally invests 70% of assets in equities and 30% in bonds, may for example suit younger members who see themselves growing their balance over a longer period. Eign – Foreign, on the other hand, is intended for Gildi's foreign members and others who are interested in having their private pension savings invested entirely in foreign assets.

The fund is now also offering another new option, Eign – Age-based, which is a suitable choice for those who want the composition of their private pension savings to automatically reflect their age, so that the proportion of equities decreases and the proportion of bonds increases as the member gets older. Those who choose this path are thus moved between the Eign – 70/30, Eign – 50/50 and Eign – 20/80 paths according to defined age brackets.

Important to choose carefully and consider costs

The changes taking effect on 1 September have been in preparation for several months and were, among other things, presented at the fund's annual general meeting in April. One of their aims is to respond to a trend that Gildi's staff have observed, namely that members are in some cases offered savings paths that do not suit their needs or circumstances.

Members are therefore encouraged to choose their investment paths for private pension savings carefully and to familiarise themselves with expected returns, risk levels, costs and other terms. There are examples of savings paths that involve high upfront fees or significantly higher ongoing costs than the paths Gildi offers. There are also examples of savings paths where it is costly to transfer savings between investment paths. Such factors can have a significant impact on returns, the build-up of savings and flexibility over the longer term.

In making these changes to Gildi's private pension savings, particular emphasis was placed on strengthening the product range in line with members' differing needs. The fund also places emphasis on a low cost ratio across all of its investment paths and charges no upfront fees.

You can find out more about the new paths here and it takes only a few minutes to sign up for private pension savings with Gildi on the fund's "My Pages".