What is net saving?
Net saving is a voluntary monthly contribution for a pension in a net pension scheme.
Your monthly pension contribution depends on the level of your salary. The government has determined through the tax rules on what salary you can accrue tax-free pension. This maximum salary is € 128,810 (2023).
A pension scheme in which pension is accrued on the salary above this limit is referred to as a net pension scheme. The name is derived from the fact that the pension contribution may not be paid from the gross income, but must be paid from the net income – that is income after deduction of taxes.
Which form of net saving is available to you depends on the agreements your employer has made with us. You can find these agreements in the net pension regulations. In the participant portal we only show the choice(s) that you can make. It is possible that your employer has not agreed net saving with us. If this is the case, then you cannot save net.
With the Zwitserleven Pensioen we know the following forms of net saving:
- Net saving
With net saving, you decide for yourself whether you want this. If you want this, you save the percentage determined by your employer of your salary above the limit amount. - Net additional saving
With net additional saving, you decide whether you want this. You can determine yourself how high the premium is that you contribute additional. - A combination of 1. and 2.
In this case, you can decide for yourself whether you want to participate in net saving or additional net saving. Both are also possible.
If you choose monthly premium contributions, this premium will be invested in the same way as the premium that your employer pays for you in the gross pension scheme. On your participant portal you can see how much you can save (contribute) in your net pension scheme and what the effect is on your expected pension. The additional premium is deducted from your net salary each month. You therefore pay this premium yourself. The additional contribution is invested until your retirement date and is used on your retirement date to purchase net pension for life.
Who is net saving (or net additional saving) intended for?
Net saving is intended for employees with a salary above the limit set by the government of € 128,810 (2023).
Net saving can be useful if the expected total income you will receive after retirement is less than the income you expect to need after retirement. To assess this you need to examine the following:
A. The total income you will receive after retirement. This income can consist of:
- AOW, everyone who lives or works in the Netherlands receives a benefit from the government. For more information, visit the SVB website.
- Pension that you accrue at Zwitserleven through your current employer.
- Pension that you have accrued with any previous employers.
- Annuities or bank savings.
- Savings or investments.
- Work, if you choose to continue working after your retirement.
On the participant portal you can enter the pension you have accrued with previous employers under the Inventory section. It is also possible to enter own resources such as savings.
You can also check on mijnpensioenoverzicht.nl how much pension income you expect and how much your partner will receive.
B. The income you need after retirement.
This includes expenses for your home (rent or mortgage), household expenses, transport (car or public transport), energy, insurance, leisure time and holidays.
On the participant portal you can enter your own expenses under the Inventory section. It is also possible to start from sample amounts from the Nibud.
If you examine both parts (A: income you receive and B: income you need), you will get a good estimate of your own situation. And you can assess whether net saving for your pension is necessary or not.
More useful information can be found on the website: Rondkomen na pensionering | Nibud
When is net saving (or net additional saving) for your pension suitable?
There are advantages and disadvantages to net saving and net additional saving. Whether it suits you depends on what you find important. And your financial situation, now and in the future. First do the research as explained above in the section “Who is net saving (or net additional saving) intended for?”.
Pros
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You accrue extra pension income for later.
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You can supplement a pension that is too low.
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You do not pay tax on the accrued value for your pension.
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You do not pay tax on the payment of the pension accrued in the net scheme.
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If you die, more money is available for partner’s pension and/or orphan’s pension.
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Your net premium is invested in the gross pension scheme just like your pension premium. This gives you the chance of a higher return.
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With net additional saving, you are free to adjust or stop your extra contribution in the meantime. You can then start saving again later.
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You can also stop in the meantime with net saving. You will then not be able to start net saving again later.
Cons
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The premium for the net pension scheme is not tax deductible.
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You will have less of your net salary left over if you invest contributions in the net pension scheme.
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You put the money away for after you retire. You cannot use this money now.
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You can no longer save net and/or make additional net savings when you leave your employment.
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The amount of the net pension that you will receive from the retirement date is not yet certain. The pension is only purchased on the retirement date. The amount of your pension depends on the value of your investments, the interest rate and the rate that the insurer uses.
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If you get divorced, part of the accrued net pension is for your ex-partner.
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Because your contribution to the net pension scheme is invested in the same way as the contribution to the gross pension scheme, you run the risk of a lower return. Or that you even have less left than you put in.
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If you have stopped net saving, you cannot start net saving again later. This does not apply to net additional saving. With net additional saving you can always stop and then start again.
Suitable:
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If you do not expect to receive enough income after your retirement.
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If you have money left over at the end of the month or can easily miss money to save.
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If you want to automatically use part of your net salary for extra contributions for your
Not suitable:
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If you expect to receive enough income after your retirement.
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If you often run out of money at the end of the month.
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If you prefer to save in a different way for your income after your retirement.
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If you prefer to use the money you would save now.
What alternatives are there?
You can also save for your future in other ways by:
- Saving money in a savings account at a bank.
- Investing money with a bank or insurance company.
- Taking out an (net) annuity with a bank or insurance company.
These alternatives are independent of your employer. You can choose from several products and providers. You also have more freedom in your choice of the distribution of the money. Please note that in some cases you have a tax advantage and in other cases you do not. It is also important to pay attention to the fees charged by the provider. The fees for these types of products are often higher than the fees Zwitserleven charges for net savings.
You could also choose to (partially) pay off your mortgage and/or debts as applicable.
How do you arrange net saving (or additional net saving) for your pension?
If you belong to the group of employees with a salary above the limit of € 128,810 (2023), you can choose to save a net amount every month.
Standard
If you do not indicate anything on your participant portal you are not making any net saving or additional net saving.
Net saving
If your salary is higher than the stated amount, you can choose for net saving at the start of your employment with your employer. You must make your choice within 3 months after the start of your employment. After that you can no longer choose to start saving net.
You may receive a salary above the limit at a later time. Then you can start net saving from that moment on. In that case, too, the period of 3 months applies for making your choice.
On your participant portal you can indicate in the My changes section whether you want to save net. Whether that option is shown there depends on the pension scheme that your employer has agreed with us. And whether you are still within the stated period of 3 months.
If you choose to make a voluntary contribution, this amount will be deducted from your net salary each month by your employer. You can stop the amount at any time. But after that you will not be able to start net saving again.
Net additional saving
If your salary is higher than the stated amount, you can choose for additional net saving. You can make your choice at any time. This is in contrast to your options with net saving.
You may receive a salary above the limit at a later date. Then you can start saving net from that moment on. Even then, you can make your choice at any time.
On your participant portal you can indicate in the Pension Planner section whether you want to make additional net savings. Whether that option is shown there depends on the pension scheme that your employer has agreed with us.
If you choose to make a voluntary contribution, this amount will be deducted from your net salary each month by your employer. You can change the amount at any time. And also stop. After that you can also start again with net additional saving.
When does net saving (or net additional saving) stop automatically?
If you have opted for net saving or additional net saving at Zwitserleven, this will automatically stop in the following cases:
- The limit amount has become higher than your salary.
- We receive a message that you have left your employer’s employment; or
- You retire from Zwitserleven.
How do you stop net saving (or net additional saving) yourself?
Net saving
You can stop net saving yourself at any time via the participant portal. You do this by submitting the change in the My changes section. You will then not be able to start net saving again later.
Net additional saving
You can stop net additional saving at any time via the participant portal. You do this by submitting the change in the Pension Planner section. If you want to save more later, you can pass this on in the same way.
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.