Here you will find an abbreviated explanation of the words we use in our letters.
- Contribution benefit agreement
- A pension scheme for employees. The contribution paid by the employer and any employee contribution will be invested until the retirement date. Therefore, the amount of the potential pension capital is not predetermined. From 15 years before the statutory retirement age, it is possible to convert parts of the pension capital or a part of the contribution into a fixed pension. You will receive this fixed pension as retirement income from the retirement date. When you retire, you can choose a fixed or variable pension with the rest of your pension capital.
- Contribution rate
- The percentage of your pensionable earnings that the employer pays as a pension contribution. The total contribution rate may be divided between you and your employer. The amount of the contribution rate can be found in the pension scheme rules.
- Defined contribution scheme
- A pension scheme for employees. The contribution paid by the employer and any employee contribution will be invested until the retirement date. Therefore, the amount of the potential pension capital is not predetermined.
- Entry age
- The age at which young employees are entitled to participate in a pension scheme.
- Expected retirement income
- The estimated amount you will receive at fixed intervals when you are retired.
- Fixed pension
- With a fixed pension, you know the amount you will receive monthly for the rest of your life. This amount will not increase or decrease.
- Flexible contribution agreement
- A pension scheme for employees. The contribution paid by the employer and any employee contribution will be invested until the retirement date. Therefore, the amount of the potential pension capital is not predetermined. When you retire, you can choose a fixed or a variable pension.
- Inflation
- Prices go up every year. This reduces the value of money. This is called ‘inflation’. As a result, your pension will buy you less every year
- Investment mix
- A composition of investment funds. The goal of an investment mix is to achieve the best possible return based on your risk profile. See also: zwitserleven.nl/fondsen.
- Investment return
- Profit or loss that you can make on your invested pension capital. As such, the return can be both positive and negative. This investment risk is your own responsibility.
- Lifecycle
- A lifecycle is a mix of investments designed to diversify investment risk. We will adjust the investments to the time remaining until your retirement age. Your investments are adjusted automatically at regular intervals. The closer you get to your retirement age, the less risk we take with your investments.
- Life expectancy
- The average age people reach in the Netherlands.
- Maximum contribution rate for PensioenAanvullen
- The maximum percentage you yourself can contribute to the pension scheme.
- Orphan's pension
- A benefit for your children if you die. How much money is paid depends on the pension scheme.
- Partnersquo's pension on accrual basis
- You are actually accruing a partner’s pension. If you stop accruing, for example because you leave your job and no longer participate in its pension scheme, you will still be entitled to the partner's pension accrued up to that time. If you die, your partner will receive a lifelong partner's pension.
- Part-time percentage
- The number of hours you work per week according to your employment contract divided by the usual number of hours in a full workweek. Overtime does not count. The maximum percentage is 100%. For example, for a full-time working week of 40 hours: An employee working 20 hours per week has a part-time percentage of 50% (20 hours / 40 hours = 0.5 or 50%).
- Pension contribution
- The amount that you and/or your employer put into your pension pot. This contribution is invested to build up the pension capital.
- Pensionable earnings
- The portion of your pensionable (yearly) salary on which you accrue pension. This is the pensionable (yearly) salary minus the deductible.
- Pension pot
- The amount you have accrued for your pension with a pension provider.
- Pension provider
- A pension fund, insurer or premium pension institution (PPI).
- Pensionable (yearly) salary
- The part of your total gross yearly salary that counts towards your pension scheme.
- Purchasing power
- Purchasing power indicates what and how much you can buy with your income.
- Retirement age
- The retirement age is the age at which your pension starts if you do not opt for bringing forward or deferring your pension. We use this age for all our calculations.
- Retirement date
- The date on which your retirement pension actually starts. You are not obliged to retire at retirement age. You can also retire earlier or later. In this letter, we assume that you will retire at retirement age.
- Retirement income
- The pension amount you receive at fixed intervals when you are retired. This refers to the pension income you receive from the pension scheme with Zwitserleven.
- Sample yield
- A prediction of the yield on your investments. This way, we can give you an idea of how much money you can expect later as pension income. It is important to remember that this is an estimate, and the actual yield may differ from the sample yield.
- State pension offset
- The portion of your pensionable salary on which you do not accrue a pension
- Surviving dependants' bridging pension
- A supplement to your partner's income if you die before the agreed-upon retirement date. Your partner will receive this supplement until they reach the statutory retirement age
- Type of investment
- The way we invest your money.
- Variable pension
- With a variable pension, you will continue to invest your pension capital, or a part of it, after the retirement date. Your pension income is recalculated every year and can may then turn out to be higher or lower.
- Waiver of contributions
- If you are (partially) declared unfit for work, the waiver of contributions ensures that you and your employer no longer have to pay (part of) the premium for your pension plan. We will then pay (part of) the contribution. This way, you will continue to be insured and you will continue to accrue pension