A defined contribution pension has many advantages, but also one disadvantage: You will not usually know how much pension you have until your retirement date. This may make you feel insecure. Zwitserleven is the only pension provider in the market to have come up with a solution: ZekerheidZwitch. ZekerheidZwitch is an innovative solution. It will give you more certainty and clarity about the level of your pension benefits on the retirement date.
Hoe does ZekerheidZwitch work?
ZekerheidZwitch will give you more certainty and clarity about the pension that can be achieved as the retirement date approaches.What we was to divide the pension into three phases.
Up to 15 years before the retirement date
The investment horizon is still long. During this period, investments are made at a slightly higher risk. If you select HorizonBeleggen or ProfielBeleggen, Zwitserleven will take care of the investments. The risk is only reduced to a limited extent.
With VrijBeleggen, you can select Zwitserleven investment funds. You should invest more cautiously as your retirement date approaches. This does not happen automatically with VrijBeleggen. You can also opt for more security if you buy a fixed pension within VrijBeleggen with ZekerheidZwitch.
15 years before the retirement date
15 years before the retirement date, you are faced with an important choice. There are a few important questions you need to answer for yourself.
- How much certainty do I want about the amount of my pension?
- How much investment risk do I want to take up to the retirement date?
- Do I want to take an investment risk after the retirement date?
With the answers to these questions, you can make a conscious choice about your pension at this important stage in your pension career. We will help you with this. We will inform you of the options and explain the consequences of your choices. Your financial adviser can advise you on this.
If being certain of the amount of your pension is important to you, you can opt for ZekerheidZwitch. From 15 years before the retirement date, part of the value of plan assets will automatically be sold every month within ProfielBeleggen. The proceeds will be used to purchase a fixed pension. This pension is guaranteed and is paid out monthly after the retirement date. As the retirement date approaches, you will acquire greater clarity and certainty about the level of your pension benefits. How much certainty depends on your investor profile. Within VrijBeleggen, you decide when and how much fixed pension you buy with the value of plan assets.
Several advantages and disadvantages of ZekerheidZwitch
The amount of your pension largely depends on the rates (interest is an important factor) at the time of purchase of the defined benefit pension. And on the average life expectancy. Due to the spread (monthly) purchase of your pension you are less dependent on the interest rate on the retirement date. If interest rates fall, there will be more pension than if the pension is purchased in one instalment on the retirement date. If interest rates rise in the years leading up to the retirement date, the pension can, however, be lower with ZekerheidZwitch than if the pension is purchased in one instalment on the retirement date. The same applies for the average life expectancy. If people live longer, purchasing in different instalments is more favourable. If the average life expectancy decreases, it may be better to wait until the retirement date before purchasing the pension. The development of the interest rate and the average life expectancy may affect the level of the pension benefit on the retirement date.
After the retirement date
You will have different options on the retirement date. For example, immediately purchase a defined benefit pension. A variable pension (with reinvestment). A high-low pension. Or combinations of the above. At least six months before the retirement date, we will inform you about all options.
What if you opted for ZekerheidZwitch and you die before the retirement date? In that case, any guaranteed benefits that have been purchased prior to the retirement date using some of the value of plan assets will be cancelled. This means that the value of the investments will be lower at the time of your death. This results in a lower partner's pension.