Variable Pension

Determine the balance between a fixed pension and investing

A variable pension can be exciting. However, at Zwitserleven, you decide how much risk you're willing and able to take. Depending on your personal situation, you choose the portion of your pension capital to continue investing. This can range from 1% to a maximum of 100%. The remaining part then provides a fixed pension income. Often, you'll consider the minimum pension you need. For that portion, you opt for a fixed pension. The rest is then utilized for the variable pension.

Chance at a higher pension income

Since you're investing (a portion of) your pension capital, you stand a chance to earn returns, potentially boosting your pension income for the following year. Conversely, it could be lower if the markets don't perform well. The larger the investment component, the greater the likelihood of variations in your annual pension income.

Pension income remains constant throughout the year

We adjust the pension income from the investment component annually based on, among other things, the investment results from the previous year. This way, you'll know exactly how much pension you'll receive for the upcoming year.

How do we calculate variable pension income?

We calculate the investment component's amount annually based on five factors:

• the capital amount you invest at that time, which depends on the investment value at that moment.
• the latest statutory projection interest rate.
• the life expectancy associated with your age at that time and your partner's age if you have opted for a partner's pension.
• the percentage of partner's pension you have chosen.
• whether you have chosen a fixed decrease or not.

From age 82, switching from variable to fixed pension
Starting from your 82nd birthday, we'll gradually convert your variable pension into a fixed pension over a 10-year period. This strategy ensures that your pension income remains stable during the later stages of your life. By the time you reach 92, you'll have a completely fixed pension.

A Variable Pension may suit you if:

• you are willing to invest (a portion of) your pension capital for the chance of a higher pension income. And you can bear the risk of a lower pension.
• you won't face financial difficulties if the investment results are disappointing. Meaning you have other financial resources to continue paying your fixed expenses. For example, your partner's pension, an annuity payout, or savings.
• you don't want to depend on the market interest rate when you retire, but prefer to spread the interest rate risk. With a fixed pension, the interest rate at the time of retirement determines the amount of pension income. With a variable pension, we determine the amount each year anew based on the current market interest rate.

Does this not really suit you?

You can opt for a Zwitserleven Fixed Pension. This means you'll receive the same amount of pension income every month for as long as you live.

Which choices can you make?

You can tailor your pension income to fit your personal preferences and circumstances. For instance, do you want to defer your pension until you reach the state pension age? Or would you prefer a higher pension in the early years? Below, you'll find a brief explanation of the various options available to you.

When do I retire?

You might choose to keep working longer and not need the income just yet. Or you might want your pension income to start at the same time as your state pension. If you're looking to retire before your pension kicks in, you can bring it forward. Thinking of retiring later? Then you can postpone your pension. Make sure to indicate this choice before your pension capital is released.
Learn more about retiring earlier or later.

Lump sum amount: up to 10% at your discretion.

The Lump Sum Act allows you to withdraw up to 10% of your pension capital in one go when you retire. This option is quite appealing. The main advantage of taking a lump sum is the flexibility it offers you upon retirement. After taxes, you can spend this money however you wish. For instance, you could renovate your home, pay off a portion of your mortgage, or take the trip of a lifetime.
Learn more about withdrawing a lump sum.

A higher pension income at the start

With the Zwitserleven Variable Pension, you can start with a higher pension income. This could be beneficial if you're facing high mortgage payments, planning extensive travels, or need to bridge a period without state pension. We boost the initial pension income by incorporating a portion of the expected investment returns. A fixed decline percentage is set at the outset to account for these anticipated investment results. This ensures that we take the expected returns into account. Consequently, if the investment performance is insufficient or non-existent, your pension income will decrease annually.

What happens if the investment results are disappointing, remain the same, or improve?
If the annual investment performance meets our expectations, your pension will remain roughly the same the following year. Should the performance exceed expectations, your pension will increase. Conversely, if the investment results are below expectations, your pension will decrease. Opting for a higher initial pension income increases the risk of a stagnant or declining pension income.