About to retire

Fixed or variable pension

Do you want certainty about your pension income? Or are you willing to take more risk (with the chance of a higher or lower pension)? Choose fixed or variable. Or a combination of the two.

Do you already know whether you want a fixed or variable pension?

Do you opt for the certainty of a fixed monhtly amount? Or do you take more risk, with a variable pension income? You can also choose a combination of fixed and variable. And if you don't yet know the difference between the two, no problem. We will explain it to you. There are a few things to pay close attention to when making this choice.

Fixed or Variable

Discover in 1 minute what the difference is between a fixed and variable pension.

1. Fixed pension

You use your pension capital to purchase a pension income for the rest of your life in one go. This way, you know for sure what you will receive every month.

Zwitserleven Fixed Pension

2. Variable pension

With Zwitserleven Variable Pension, you keep investing (a part of) your pension capital. With the remaining part, you buy a fixed pension income. The split, you choose yourself. This gives you a chance at a higher pension income.

Zwitserleven Variable Pension

Anton

preferred a fixed pension
“I chose a fixed pension. It is the only pension I have, and I prefer a bit more certainty in the coming years. I know exactly how much I receive and that just gives me peace of mind.”
Read about Anton’s choice
Thea

went for a variable pension
"With my adviser, I carefully examined what I needed. I opted for 100% variable. My partner has a good pension. So with mine, we could afford to take some risk."
Read Thea’s story

This is what you need to know

Are you nearing retirement? And did you accumulate a pension capital with which you are going to purchase pension income? Then at Zwitserleven, you can choose between a fixed or a variable pension. Or a combination of the two. You can even choose any variable percentage between 1% to a maximum of 100%. Even if you have built up your pension capital with other pension providers. This way, you decide how much risk you want to take.

The differences between fixed and variable pension.
	Fixed pension	Variable pension
Purchasing pension income	You purchase a pension income for the rest of your life with your pension capital in one go.	You purchase pension income each year for that year. You continue to invest with the rest of your pension capital.
Gross pension income	Every month you receive the same amount. That amount will not increase anymore.	Each year, your pension income is recalculated based on the return of your investments, the market interest rate, and the average life expectancy.
Investing	Your pension capital is not invested. Therefore, the performance of the stock market, whether good or bad, does not affect your pension income.	Since you continue to invest after your retirement date, you have the chance of a higher pension income if the investments perform well. Then your pension income can even increase. However, your pension income can also (temporarily) decrease. That is a risk of investing.
Flexibility	A fixed pension is always 100% fixed.	With a variable pension, it is also possible to continue investing part of your pension capital. Your pension income then consists of a fixed part and an investment component. At Zwitserleven, the investment component can range from 1 to 100%. This way, you can tailor your pension to precisely match your financial situation.
Market interest rate	The amount of your pension income depends on the market interest rate at the retirement date. If it is low, it results in less pension income. At that point we establish your pension income at that current interest rat. Meaning your pension income will not change anymore if the market interest rate rises or falls thereafter.	Every year, you use your pension capital to buy a pension income. This means you are not dependent on the market interest rate at a single point in time. If interest rates rise? Then this has a positive effect on your pension income. If interest rates fall? Then this has a negative effect. So this can be different every year.
Life expectancy	Your pension income depends on the average life expectancy at the time you retire. If life expectancy rises or falls after the retirement date, it will not affect your pension income.	During the annual determination of your pension income, the average life expectancy plays a role. A rising life expectancy has a negative impact on your pension income. A decreasing life expectancy has a positive impact.
Purchasing power	If life becomes more expensive, your pension income does not increase with it. So, if prices rise, your purchasing power decreases and you can buy less with your pension income.	If your investments yield enough returns, your pension income can increase. As a result, your purchasing power is maintained (to some extent). If the investments perform worse than expected? Then you may be able to buy less with your pension income and your purchasing power decreases.
Availability	Available for self-service online at Zwitserleven. Also possible through an adviser.	Only available through an adviser.

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John, 67 years old

‘I chose a variable pension because I had other pension pots that, together with the state pension, provide a fixed income. That gave me the confidence to take some risk.’

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Fixed or variable pension

Do you already know whether you want a fixed or variable pension?

Fixed or Variable

1. Fixed pension

2. Variable pension

Anton

Thea

This is what you need to know

The details

This is how you do it

01

Fixed pension

02

Variable pension