Still, it is good to know that if you die before your retirement date, your partner will often receive a partner's pension. Whether this has already been arranged and how much depends on your pension scheme. You can see this in MijnZwitserleven.
The Surviving dependants’ bridging pension is a top-up to your partner’s income if you die before your agreed retirement date. Your partner will receive this top-up until your partner reaches the state pension age. If your partner dies before the state pension age the top-up will cease.
No surviving dependants’ bridging pension yet?
Your employer may also let you choose whether to arrange such a pension. This is called a voluntary cover. You can opt for a flat-rate top-up or one that increases annually. Your employer will deduct the additional premiums for the surviving dependants’ bridging pension from your gross pay. This means that you will pay no tax on this.
What you need to know about voluntary cover
There are three things to consider when thinking about taking out voluntary cover.
- It is voluntary cover that you can choose if this cover is not already included in your pension scheme.
- You make your choice within 3 months of commencing your employment or of registering for the pension scheme with Zwitserleven. After that period, we may ask questions about your health to check whether you can be insured or possibly refuse coverage.
- In MijnZwitserleven, you can see what voluntary cover you can choose. You can easily opt in yourself here.
When to opt for the Surviving dependants’ bridging pension?
There are advantages and disadvantages to the Surviving dependants’ bridging pension. Whether it suits you therefore depends on your personal situation and what you consider important. The overview below shows the situations in which you might consider taking out the Surviving dependants’ bridging pension.
Pros
- Some of the loss of your income will be absorbed.
- You will save your partner from financial turmoil.
Cons
- You will pay the premium yourself through your employer.
- This is a risk insurance policy. This kind of insurance pays out only if you die before you retire and you have a partner at that time. Cover will stop if you are still alive on your agreed retirement date.
- The top-up will cease if your partner dies before the state pension age.
May suit you if:
- Your partner and child(ren), if you have any, depend on your income to a (large) degree.
- There are no other financial resources such as savings or insurance in case of death.
Probably suits you less if:
- Your partner’s income is high enough to make up for the loss of your income.
- There are already other financial resources such as savings or insurance in case of death.
- You prefer to seek a financial solution for the loss of your income that is separate from your employer’s pension scheme. In that case, it is worth knowing that the premium for separate insurance may be higher than the premium for coverage in your pension scheme.
- Your partner is (almost) in receipt of a state pension benefit.
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.