Good news for your employees with a defined contribution scheme who are about to retire! Since the beginning of April, they can choose to take a variable pension in addition to a fixed pension with Zwitserleven.
The Zwitserleven Variable Pension offers flexibility at the time of choice: pensioners can choose a fixed pension and continue to invest with one single product. Since any ratio between the fixed pension component and the investment component is possible, Zwitserleven Variable Pension is also referred to as personalised investing, ranging from a high level of risk to a high level of security.
We also believe it is important that employees can make an informed choice about their pensions. We have devoted much energy and attention to making the information comprehensible. For this, we explained all the product features using one of our characters, Kees, who, like the target group, is on the verge of retirement. This information is provided in the Features of the Zwitserleven Variable Pension and was very well received by the participants in our customer survey.
Arranged through independent advisers
Zwitserleven Variable Pension has many nuances and can therefore be tailored to an employee's personal situation. This means it is important to know how much risk a person is able and willing to take. We believe that independent personal advice has real added value here. The risk profile test that employees then complete together with their adviser indicates which combination of fixed pension and investment best suits their financial situation and attitude to risk.
Everyone starts in the same investment mix. The degree of risk is then determined by the ratio of the fixed pension component to the investment component. We can thus structure the investment mix very offensively.
Research has shown that this method of risk management yields the best returns. In addition, customers indicated that they prefer to have a larger proportion of fixed pension with a lot of security and then take more risk with the part that they do not really need for their planned expenses. This gives them the best chance of the highest possible return. The reasoning was: ‘if it goes well, we can go on a dream trip; if not, we can change our holiday plans.’
Adjusting the risk profile
Employees have a free choice only when purchasing their pension; after that, the law does not permit further changes. So the ratio of fixed to investment that an employee chooses on their retirement date also cannot be changed later. However, it is possible to retake a risk profile test if someone’s financial situation has deteriorated. Based on the outcome, we can then move this person to a more defensive investment mix.
In addition, as standard, we start reducing risk by converting a part of the investment part into a fixed pension every month from 82 years of age. After 10 years, so when the pensioner reaches 92 years of age, the pension income consists entirely of a fixed pension that they receive for the rest of their life.
Employees can choose to have a partner's pension or not. The percentage of the partner's pension can also be chosen, subject to a maximum of 70%. In addition, there is the option to opt for a higher benefit at the start, which in the market is also known as a preset reduction.
More information can be found on the Zwitserleven Variable Pension page.
This article is published on 14 April 2022