Reducing your partner’s pension

What is reducing of your partner’s pension? 

You accrue a pension capital in your pension scheme at Zwitserleven. On your retirement date, the accrued pension capital is converted into a payment with an insurer of your choice. The pension capital is then converted into a retirement pension and a partner’s pension as standard. The partner’s pension provides a benefit to your partner* if you pass away at or after your retirement date. The standard partner’s pension is equal to 70% of the retirement pension. 

It is also possible not to purchase a partner’s pension. As a result, the retirement pension will be higher, but your partner will not receive a benefit after your decease. This is called convert. You can also convert a part of the partner’s pension. You do this by choosing a partner’s pension that is lower than 70% of the retirement pension. 

Note:  you choose to reduce your partner’s pension just before you retire. As soon as you choose this option, you cannot change this afterwards. 

On your participant portal you can see the effect of reducing your partner’s pension. To do this, go to “What if…” and select the section “.. you convert your partner’s pension?”. We will then show you the effect on your expected retirement pension if you reduce the partner’s pension. You do not see the effect on your partner’s income from the moment you pass away. 

Note:  the insurer where you purchase the pension may set conditions. Inquire about this. And request a final calculation from the insurer. 

For whom is a reduction of your partner's pension intended? 

By reducing your partner’s pension, your partner will receive no or a lower payment after your decease. This could be interesting: 

  • If your partner has a good pension or other financial recourses for after your decease; or 
  • If you expect your partner to pass away before you do. In that case, a purchased partner’s pension will not be paid out. 

If you do not have a partner on your retirement date, you should certainly not purchase a partner’s pension. The partner’s pension then cannot be paid out. 

When is it suitable to reduce your partner’s pension? 

There are advantages and disadvantages to reducing your partner’s pension. Whether it suits you depends on what you find important. And your financial situation.

Pros

  • You will receive a higher pension for as long as you are alive. 

  • You can reduce the partner’s pension in part or in full, so that it fits in well with your own financial situation and that of your partner. 

  • If you do not have a partner, you can use your entire capital to receive a higher pension yourself. 

  • You can combine the choice to reduce your partner’s pension with other choices you can make on your retirement date, such as a high-low pension or a variable pension. 

  • If you were married or had a registered partnership with your partner, you and your ex-partner will both receive 50% of the retirement pension after a divorce. This retirement pension is higher than without a reduction in your partner’s pension. 

Cons

  • Your partner will receive no or less partner’s pension if you pass away after the retirement date. 

  • Your partner must agree to a reduction in your partner’s pension. 

  • You cannot reverse the choice to reduce your partner’s pension after your retirement date. 

  • If your relationship with your partner ends after your retirement date, your ex-partner will no longer receive a partner’s pension when you pass away. 

  • If you cohabited** with your partner on a long-term basis, your ex-partner will not receive a retirement pension after the end of the relationship. This also excludes the increase in the retirement pension that has arisen due to a reduction in the partner’s pension. 

Suitable:

  • If your partner has a good pension or other financial resources for after your decease. 

  • If you don’t have a partner. In that case, no partner’s pension can be paid out and reducing the partner’s pension will result in a higher pension for yourself. 

  • If you expect to live longer than your partner, for example due to medical circumstances. 

Not suitable:

  • If you have a partner who has no or not enough pension or other financial resources to live on after your decease. 

  • If your partner does not agree to a reduction of your partner’s pension. 

  • If you have a partner and want to have peace of mind that a benefit has been arranged for your partner after your decease. 

  • If you expect to live less than your partner, for example due to medical circumstances 

    What alternatives are there? 

    If reducing your partner’s pension is not suitable, but you do want a higher income after your retirement date, you can: 

    • Retire later; 
    • Choosing a high-low pension. You will receive a higher pension over a predetermined period. After this period you will receive a lower pension; 
    • Choose a Variable Pension. You may receive a higher pension. But you can also receive a lower pension in one or more years; 

    For these options, see the information about the other components on this website. And you could also do the following: 

    • If you have savings, withdraw money from them; 
    • If you have investments, sell them (in part); 
    • If you have an annuity, use it. 

    How do you arrange a reduction of your partner’s 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 to reduce the partner’s 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-time option to reduce your partner’s pension. If you choose this option, you cannot change this afterwards.  
     
    If you do not make use of this option, a partner’s pension will be purchased as standard. The partner’s pension then provides a benefit to your partner if you pass away on or after your retirement date. The standard partner’s pension is equal to 70% of the retirement pension. This is regulated by law. 
     
    If you want to reduce the partner’s pension, your partner must agree to this.

    *Your partner is the person whom you: 

    • are married to; or 
    • have a registered partnership with; or 
    • have a long-term joint household (cohabiting**). 

    You may have a maximum of one Partner. 

    **A long-term joint household (cohabiting) qualifies as such if the following conditions are fulfilled: 

    You and your partner are both not married and are not in a registered partnership with any third persons; and 

    Your partner is not related to you in the first degree; and 

    You and your partner are registered at the same address for at least six months in the BRP (Municipal Personal Records Database). Or you and your partner can provide a notarised domestic partnership agreement. 

    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.