This is because we incur costs when arranging your pension. Amongst other things, these costs are for managing your pension and hedging risk.
The amount of contribution we actually invest also depends on your age. In general, the older you are the more we invest, because the money we invest on your behalf does not have a long time in which to provide a return.
Are you accruing capital in the individual gross defined contribution agreement?
Then the contribution you pay consists of a contribution to be invested and a mark-up for the costs we incur. The invested contribution is established on the basis of your age. If you are older, you will pay more contribution as we invest more on your behalf.
Are you accruing pension in the collective gross defined contribution agreement?
If so you will, just as everyone in this scheme, pay a fixed percentage of your salary/pension basis. We use part of this to pay our costs. The other part is used to make investments. If you are young, the money we invest on your behalf has a longer period to provide a return than it would if you were about to retire. Consequently, we invest a lower amount on your behalf. The closer you get to retirement, the higher the amount we invest on your behalf.