The fixed personal pension benefit gives you complete certainty about your pension benefit. The amount is fixed from your retirement date. You have various options to adjust the benefit to your wishes and personal situation. For example, you can choose a higher benefit in the first few years and a lower benefit subsequently.
Important advantages of the fixed personal pension benefit are:
With a fixed pension benefit you do run inflation risk. You can read all about it below, under the ‘Risk’ tab.
We do not invest for you with your accrued pension money (your ‘pension capital’). As the amount of the pension benefit is fixed, you do not run the risk of a fall in your benefit. On the other hand, you also have no likelihood of receiving a higher benefit.
The fixed personal pension benefit may suit you if:
The fixed personal pension benefit is unlikely to suit you if:
If you are interested in Nationale-Nederlanden's fixed personal pension benefit, you can request one or more quotations.
You can make your own choices and request a quotation based on those choices:
You can read more about the choices for your pension benefits under the tab ‘Choices’ and on the page Choices for your pension benefits.
If you opt for the fixed personal pension benefit, you have three choices to adjust the benefit to your needs.
The pension scheme regulations of your employer include a certain retirement age. If you make no other choice, your pension benefit will start on the first of the month in which you reach this age. In other words, this is the retirement date of your pension scheme. However, you can also choose to retire earlier or later.
Remember: the retirement age in your pension scheme regulations may differ from the age at which you receive the Dutch state pension.
If you prefer to retire later, you can do so in two ways with the fixed personal pension benefit. It is important to understand the advantages and disadvantages before making your choice. We will be happy to explain both deferment methods for you. If you have any questions about this, please contact your Pension Coach: he or she will be happy to answer your questions. The contact details can be found in the contact block at the top right of this page.
‘Buying a deferred pension’
You buy your pension benefit on the retirement date of your pension scheme. But you have the benefit commence later. This is how it works:
Once you have bought a pension benefit with your pension capital, you can no longer buy a benefit for this pension capital elsewhere (‘shopping’).
‘Postponing pension capital’
You do not purchase a pension benefit on the retirement date of your pension scheme. You buy the benefit only when you want your pension benefit to start. This is how it works:
As long as you have not yet purchased a pension benefit, you can still choose to do so with another pension provider (‘shopping’).
Additional requirement when postponing a temporary pension benefit
If you want to ‘buy a deferred pension’ or ‘defer your pension capital’ for a temporary pension benefit, an additional requirement may apply.
You can see which type of temporary retirement pension you have in the pension regulations of your pension scheme.
If you die after your pension benefit has started, your benefit will stop. If you have a partner, your partner will also lose income. You therefore purchase a partner's pension by default for your current partner at the same time as you purchase your own pension benefit. Your partner will then receive a lifelong benefit in the event of your death. The partner's pension is a certain percentage of your pension benefit. This is 70% by default.
But you and your partner can also make a choice other than the default option. You can choose to:
Your partner must agree to your choice of a lower or no partner’s pension. Discuss this choice seriously with your partner. If you do not have a partner, you do not need to purchase a partner’s pension and your own pension benefit will be higher.
You can choose a fixed pension benefit that remains the same (‘constant’). You can also choose to receive a higher benefit in the first few years. After that, you will receive a lower benefit (‘high-low’). You choose how many years you want a higher benefit, between one and ten years. When your pension benefits start, you will know the amount of both the higher and lower benefits.
High-low can be attractive if you expect to need more money in the first few years. For example, because your mortgage is not yet paid off. Or because you think you will be more active in the first few years and want to be able to spend a little more.
Your choice for a constant benefit or for high-low has no effect on the level of any partner’s pension. We calculate the level of the partner’s pension (70% or 35% of your pension benefit) as if you were buying a constant pension benefit. In paying out the partner’s pension, it is always an constant benefit.
You can read more about the choices you can make for your pension benefit on the page Choices for your pension benefit.
Soon you may have a new choice when you retire. You can then receive part of your retirement pension in one go: a ‘lump sum’. With that money, you can do what you want. But if you choose a lump sum, your lifetime pension benefit will be lower. This new option will probably enter into force on 1 January 2023. That depends on when exactly the relevant law is passed.
How does this work exactly and what do you need to consider? And can you opt for a lump sum if you are retiring soon? We tell you all about it on the page Choices concerning your pension benefit.
After you have bought the pension benefit, you run an inflation risk with the fixed pension benefit. Normally, prices rise slowly in the Netherlands. This is known as inflation. It means that in five years’ time, you will be able to buy less for € 100 than you can today. So in five years’ time, you will need more money to buy the same thing. But your pension benefit will not increase. You run the risk of being able to buy less from your benefit after a few years.
The level of your fixed pension benefit depends, for instance, on:
Do interest rates and average life expectancy change after you buy your pension? This has no effect on the amount of your fixed pension benefit.
We calculate your pension benefit as a gross amount. But we pay your benefit net. This is because when you retire, we are legally obliged to withhold wage tax from your gross benefit. In addition to wage tax, we also deduct the income-related contribution for the Dutch Healthcare Insurance Act from your gross benefit. The deductions do not take into account the wage tax deduction.
We charge administration fees for our services. These include the monthly payment of your pension and the costs we incur to inform you about your pension benefit.
We deduct the administration fees on a one-off basis from your pension capital. So you will never have to pay these costs again. From the amount that remains, we calculate your fixed pension benefit. You will find the exact amount of the administration fees in the quotation.