Your retirement options

Will you be retiring soon? Then you will have some choices to make. For instance, whether you want a higher partner’s pension or, alternatively, a bigger retirement pension. You can also choose to have a higher amount paid out for the first few years and less later on, or vice versa. Or maybe you prefer to leave everything as it is. Be sure to make an informed choice, so you will have a pension that fits your situation.

Higher retirement pension or partner’s pension?

In your pension scheme, you will typically build up partner’s pension in addition to retirement pension. This is to ensure that if you have a partner, they are taken care of financially in the event of your death. On your retirement date, you can, under certain conditions, also use the value of the partner’s pension to increase your retirement pension. Note that you cannot do this without your partner’s consent. Are you single? Then the choice is yours.

If you have a partner and want to make sure they are comfortable after your death, then it is also possible to use a portion of the retirement pension to increase your partner’s pension.

Earlier or later retirement?

Do you wish to retire early? In many cases, you can decide so yourself.

If you retire early, then the amount of pension will end up being lower. That is because you will build up less capital and will receive pension for a longer period of time. You can also postpone your retirement date. Then the amount of pension will be higher and you will receive it later.

If you wish to stop working sooner or continue working for longer, discuss this with your employer or contact the pension fund or insurance company that administers your pension scheme.

Part-time pension

In some cases it is possible to start receiving a part-time pension before your official retirement date. For example, if you reach an agreement with your employer that you will start working part-time. In that case you will work part of the time and receive pension for the days on which you are no longer working. To find out if your pension scheme allows this, contact your pension provider.

Variation of the level of your pension

Within certain limits it also possible to vary the level of retirement pension you receive. You can receive a higher pension for the first few years after your pension commences and a lower amount after that. This can be helpful if you expect to need a higher income immediately after retiring than as you get older, for example because your children are still studying or you have mortgage payments to make. The reverse is also possible, for example if you have a partner who is younger than you who still works. This variation of the level of pension is referred to as the ‘high-low arrangement’.