That is why, Ronald Janssen pleads for a more holistic approach. If you want to guarantee a sufficiently high pension income, you must have two types of capital: economic capital and human capital. Companies and institutes that need it to guarantee that they can bear the risks they run, even in a worst-case scenario mostly use the term of economic capital. Economic capital for private individuals is the guarantee that their pensions are not endangered.


Obviously, people do not only save for their pension. Their money is intended initially for their current daily expenses. The remainder of the money can be put aside for unforeseen expenses and for the future pension income. If there is still money left over, luxurious long-term objectives (such as a second house) and possibly estate planning are options to consider. The economic capital is the guarantee that the accrual of pension is not endangered in any case.

Human capital is not constant

In addition, each working person has human capital: the capacity to generate income until the retirement date. The value of human capital is not constant. Digitalisation has a big impact on the human capital of many people. Robots replace administrative work. Many people are forced to invest in training and retraining for retaining or obtaining a job in the future and to generate income.Human capital also alters due to changes in careers, which nowadays is completely normal. Usually, a change in career goes hand in hand with a change in future prospects and therefore, affects human capital directly. After all, people have to invest more in training/retraining to stay attractive in the job market. If their current jobs become redundant or are automated, they must be able to roll into alternative careers.

A second factor that affects human capital is the fact that people live increasingly longer and retire much later. Therefore, they have to accrue pension over a longer period and they must be able to generate income long before their retirement. That also encourages people to have different careers in which they will have to invest. For people between twenty and forty, investing in oneself is one of their most important objectives.

A person, who retires earlier or stops working earlier for whatever reason (e.g., people with physically taxing jobs), will also have to cope with an increasingly larger pension shortfall.


A change in career goes hand in hand with a change in future prospects and therefore, affects human capital directly.

Companies cooperate

More and more companies are aware of the consequences for themselves and their employees, if the latter cannot continue to participate in the rat race. These companies respond accordingly. Ortec Finance examines how people can stay fit longer so that they can continue to work longer. This is particularly important for professions that demand very physically taxing activities. Often, employees who work four or five days per week cannot continue this until their retirement date and therefore, discontinue prematurely. The result is that they face a pension shortfall or even a greater pension shortfall. The employer concerned looks actively for a solution. Because this target group usually has a relatively low income, the State’s old-age pension constitutes a relatively large part of their income after retirement. Together with Ortec Finance, the employer examines now whether it is possible to have these people work one of two days less, while retaining their income, and to offer additional facilities to stay fit. The pension funds could finance the missed salary expenses. This reduces pension payments, while maintaining the income before retirement.

In various sectors, the focus shifts to the employee. In a dealing room of a large bank, a pilot is now running in which people no longer have sales targets, but fitness targets. After all, energetic employees perform better.

Financial planning provides more security

The aforementioned are just two examples of new ways in which employers invest in their employees. We see the emergence of a comparable creative approach in financial planning. Some employees face the risk that their job will become redundant sometime in the future, for example, due to automation. This threat of financial insecurity will certainly affect job performance. In response to this, increasingly more companies offer their employees a certain form of financial planning, usually via an external financial advisor.

The result is a stronger integral management of both human capital (by investing in careers) and economic capital (by financial planning). People will gradually use a more holistic approach to their financial life.


Ronald Janssen
Managing Director Goal-Based Planning
+31 10 700 56 97

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