Risk preference survey

Understanding how much investment risk participants are willing and able to take

Under the New Pension Act pension funds and administrators are required - at least once every five years - to ask participants about the investment risks they are able and willing to take. Besides the standard questions on risk capacity and risk appetite, the PwC TrueChoice risk preference survey can also test ESG preferences.

The PwC TrueChoice risk preference survey

PwC & TrueChoice's risk preference survey gives you insight into the extent to which participants are willing and able to take investment risks. Under the New Pension Act it is mandatory to survey this once every five years among your participants. The survey offers you - among other things - insight into the following:

Risk capacity: the amount of risk a participant can take. In other words, what is the minimum pension capital a participant needs to be able to retire (without getting into financial trouble).
Risk appetite: the amount of risk a participant is willing to take. What level of risk is a participant willing to take in order to achieve a higher pension?
Participant characteristics: the relevant characteristics of the participants, such as age, living situation and education level.
ESG preferences (optional): ESG-related preferences, such as preferences for investing or not investing in certain sectors.

In addition to surveying participants' risk appetite and risk capacity (and ESG preferences), PwC & TrueChoice provide access to a live dashboard where survey results can be viewed and analysed on an ongoing basis. It is also among the possibilities to use the results of the survey together or by us to determine the risk attitude of groups of participants.

What makes PwC & TrueChoice's risk preference research unique?

PwC & TrueChoice's risk preference research focuses primarily on measuring participants' risk appetite and capacity. Using interactive methods, we ask participants, to what extent they themselves think and/or believe they are capable of taking a particular risk. The survey is designed entirely in your own house style. In addition, PwC & TrueChoice's risk preference survey offers the opportunity to get a picture of participants' ESG preferences. This gives you even more insights into your participants' preferences.

What can PwC do for you?

PwC can support you in identifying the level of investment risk your participants are able and willing to take. Would you like to find out more? Or receive a demo? Then get in touch via the contact form.