More certainty with the ZekerheidZwitch
In your pension scheme, you accrue an income for later on. If you do this through a defined contribution scheme, you will receive a fixed or variable pension when your pension comes into payment. You will only know how much your pension will be at that time. And that can create uncertainty. Zwitserleven has a solution for this: ZekerheidZwitch. This allows you to purchase a guaranteed old-age and partner's pension already before your retirement date.
What is ZekerheidZwitch?
In your pension scheme, you have choices to make that may affect your pension income. If more certainty is important to you, there is the option of ZekerheidZwitch. With ZekerheidZwitch, you use part of your pension capital each month before your retirement date to purchase a guaranteed old-age pension and partner's pension. From your retirement date, you will then receive the same amount of pension income each month for that portion.
When does ZekerheidZwitch start?
With the ProfielBeleggen investment form, we invest for you in a certain mix of investments. This is known as a lifecycle. We reduce your investment risk as you approach your standard retirement date. When we start doing this, but no earlier than 15 years before your standard retirement date, you have an important choice to make. This is when you can choose to start ZekerheidZwitch. The point at which this starts depends on your investor profile.
| Investor profile | Start of ZekerheidZwitch |
|---|---|
| Conservative | 15 years before retirement date |
| Defensive | 15 years before retirement date |
| Neutral | 12 years before retirement date |
| Ambitious | 10 years before retirement date |
| Offensive | 8 years before retirement date |
If you are using the VrijBeleggen investment form, you decide when and how much of your pension capital you will use to purchase a guaranteed old-age and partner's pension.
Choosing ZekerheidZwitch
- If you are using the HorizonBeleggen investment form, and you would like to use ZekerheidZwitch, you need to switch to ProfielBeleggen. Go to MijnZwitserleven to see if you have the option to choose ProfielBeleggen. This depends on your pension scheme.
- You can convert between 25% and 100% of the value of your plan assets into a guaranteed pension before your retirement date.
- You can use your remaining pension capital to purchase a fixed pension on your retirement date. Or you can continue to invest some of your pension capital after your retirement date. This is known as a variable pension.
Make your choice
-
Define your investor profile
In MijnZwitserleven, you first define your investor profile. Click ‘View investments’ and then ‘Define investor profile’. -
Submit your choice
Check whether ZekerheidZwitch is fitting in your situation. Once you have done so, you can simply activate ZekerheidZwitch in MijnZwitserleven.
If we do not hear from you
If we do not hear from you, ZekerheidZwitch will remain switched off. You can change this at any time.
When to choose ZekerheidZwitch?
So there are advantages and disadvantages to ZekerheidZwitch. Whether it is right for you depends on what is important to you. And what options you have within your pension scheme. Therefore, first check in MijnZwitserleven which investment forms you can opt for. The overview below shows the situations in which you could consider ZekerheidZwitch.
Pros
- You get increasing clarity and certainty about the level of your pension income as you approach your retirement date.
- From your retirement date, you will receive the same amount of pension income each month for the part of your pension capital you have converted into a guaranteed old-age and partner's pension.
- You are free to stop ZekerheidZwitch in the interim. This will then apply to the pension capital that has not yet been converted into a guaranteed old-age and partner's pension.
Cons
- The amount of the guaranteed pension depends largely on the pension rates at the time of this pension is purchased. The pension rates may be more or less favourable at that time.
- Your guaranteed pension will not be adjusted in line with price increases (inflation). As life gets more expensive, your pension income will not increase. Over the years, your purchasing power will decrease and your pension income will be worth less.
- You will no longer be able to invest or purchase a variable pension with the part of your pension capital you have converted into guaranteed old-age and partner's pension.
- If you pass away before your retirement date, your previously purchased guaranteed old-age and partner's pension will lapse, as this only comes into payment after your retirement date.
- You cannot use ZekerheidZwitch for the part of the value of your plan assets you use to prepare for a variable pension.
May suit you if you:
- can choose either the ProfielBeleggen or VrijBeleggen investment forms and one of these two investment forms suits you better than HorizonBeleggen.
- want increasing clarity and certainty about the level of your pension income.
- already know that you want a fixed retirement income from your retirement date for part of your pension capital.
Probably suits you less if you:
- can choose the HorizonBeleggen investment forms and this suits you better than ProfielBeleggen or VrijBeleggen.
- are willing to continue investing your entire pension capital until your retirement date and thus take advantage of the opportunity for a higher pension income.
- want to continue investing your pension capital after your retirement date and thus take advantage of the opportunity for a higher pension income.
- want to fully prepare your investment mix for a variable pension now.
Need advice on your choices?
We are happy to help you make choices for your pension. These choices may have major financial implications. Our guidance covers only your pension scheme with Zwitserleven. Whether a choice is right for you obviously depends on your whole personal situation, now and in the future.
Perhaps you should consider contacting an adviser, who can give you an overview of all your financial affairs and help you to make the most suitable choices.