High-low pension

What is a high-low pension? 

You accrue a pension capital in your pension scheme at Zwitserleven. On your retirement date, the accrued pension capital will be used to purchase a pension benefit with an insurer of your choice. At that moment you also make the choice for a high-low pension. 

If you choose a high-low pension, you will receive a higher pension in the first period after your retirement. After this period, a lower pension will follow. That is why we call this a high-low pension. 

You can decide yourself how many years you want to receive a higher pension. However, the following applies: 

  • The period for the high pension starts on your retirement date. It is not possible to start at a later moment; and 
  • The period for the high pension is maximized on 10 years. A shorter period is possible; and 
  • The insurer where you purchase the pension may set additional conditions. 

You can determine the amount of your high pension in relation to your low pension yourself. However, the following applies: 

  • After the period of the high pension, your pension may be reduced by a maximum of 25%. So if you buy a high pension that is equal to € 1,000, the low pension you buy must be at least equal to € 750. More is allowed, less is not allowed; 
  • The insurer where you purchase the pension may set additional conditions. 

Below we indicate the situation if you do or do not choose a high-low pension. 

Temporary a higher retirement income?
  • AOW
  • Pension

On your participant portal you can see the impact of a high-low pension. To do this, go to “What if…” and select the section “.. you first want to receive a higher pension?”. 
 
Note: Ask the insurer about the conditions. And request a final quote there. 

Who is a high-low pension intended for? 

A high-low pension may be interesting for you if you would like to receive more pension in the first years after your retirement than in the later years. 

If you do not make a choice, an equal pension will be purchased for you by default. 

Note: If you choose a high-low pension, this applies as long as you receive your pension. You cannot switch to an equal pension after your retirement. 

When is a high-low pension suitable? 

There are advantages and disadvantages to a high-low pension. Whether it suits you depends on what you find important. And your financial situation now and in the future. 

Pros

  • You have more money available to spend in the first years after your retirement date; 

  • You will receive a bigger part of your pension earlier. If you pass away earlier you received more pension than in an equal pension. 

Cons

  • You may pay more tax on your pension; 

  • You can miss allowances or subsidies because you have a higher income; 

  • You can borrow less money later in life; 

  • You will get used to your high pension. As soon as you receive the low pension, it is more difficult to live with the lower amount; 

  • At a later age you might have higher healthcare costs, which can be less affordable with a low pension. 

Suitable:

  • If you retire before you and/or your partner receive state pension. With a higher pension in the first years you can (partly) compensate that you and/or your partner not yet receive state pension; 

  • If you expect you will need more money in the first years after your retirement. For example, for paying off a mortgage, traveling or paying for your children’s studies; 

  • If you don’t expect to live long. 

Not suitable:

  • If your low pension is too low for your expenses. 

  • If you already receive extra income in the first few years, for example from an annuity insurance policy. And because of this you do not need a higher pension in the first years after your retirement; 

  • If your partner is still working and you do not need a higher pension in the first years; 

  • If you expect to spend more money on costs such as healthcare costs at a higher age. 

    What alternatives are there? 

    If a high-low pension is not suitable, but you do want a higher income in the first years after your retirement date, you can: 

    • If you have savings, withdraw money from this; 
    • If you have investments, sell them (partly); 
    • If you have an annuity, possibly use it; 
    • Reduce (part of) your partner’s pension in order to receive a higher retirement pension. Keep in mind that there will be less pension for your partner when you pass away. For this choice, see the information on the page “reducing your partner’s pension” on this website. 

    How do you arrange a high-low pension? 

    Before your retirement date, we will inform you about your upcoming retirement and the options available to you. When choosing the insurer that will pay your pension benefit, you can indicate whether you want a high-low pension. It is important that you first inquire with this insurer what options they offer. Not every insurer offers (all) the options. 

    When you retire, you have the one-off option to choose a high-low pension. If you do not use this option, an equal pension will be paid as standard. 

    Need advice?

    We are pleased to assist you with your retirement choices. Those choices can have major financial implications. Our guidance is only about your Zwitserleven Pensioen. Whether a choice is right for you naturally depends on your entire personal situation. Now and in the future. Have you thought about asking an advisor? They can give you an overview of all your financial affairs. And help you make the most appropriate choices.