Purchasing a guaranteed pension

Are you considering purchasing a guaranteed pension under your investment-linked pension? This page contains information on what to think about when making your choice.

How it works

As a rule, we invest the contributions for your pension. Do you want greater certainty about the amount of your pension? In that case, you can use (a portion of) your contribution to purchase a guaranteed pension. You can also do this with (a portion of) the value of your pension investments. Have you purchased a guaranteed pension? If so, this portion of your pension is certain. This means that we no longer invest this portion for you. Note! You cannot reverse the purchase of a guaranteed pension.

When you purchase a guaranteed pension, you also automatically purchase a partner's pension. The partner's pension is 70% of the old-age pension. In other words, for each €100 in guaranteed old-age pension that you purchase, you also purchase €70 in guaranteed partner's pension. This is what your partner will receive in the event of your death following your retirement date. When you retire, you can exchange (a portion of) the partner's pension for extra old-age pension.

Advantages and drawbacks of purchasing a guaranteed pension

Purchasing guaranteed pension provides you with certainty about the amount of (a portion of) your pension benefit. But with this option, you can no longer benefit from the possible results of the investments. As soon as you have bought it, the amount of your guaranteed pension is fixed. No account is taken of inflation and therefore the fact that money loses value over time. Consequently, when you retire you may find that you are not able to purchase as much with your pension as you expected.

What does it yield?

If the interest rate is low, you will be able to purchase (far) less guaranteed pension than when the interest rate is higher. This is because the price you pay for a guaranteed pension strongly depends on the interest rate. As the interest rate is currently very low, it is now expensive to purchase a guaranteed pension. Therefore, your money will purchase little guaranteed pension presently.

Would you like to know how much guaranteed pension you can purchase with your contribution or the value of your investments? If so, you can contact us. We will be happy to provide the information you need. Please see our contact information below.

More certainty with investments

You can also increase the certainty of your pension benefit by taking fewer risks with your investments. In that case, your pension will probably be lower. In your online pension portal under Investment choices, you can see what another investment choice will mean for your expected pension benefit. You can also see how much pension you can expect to receive if the economic circumstances are above or below expectation. Sign in to my.nn, click on Persoonlijk Pensioen Plan or click here and choose under ‘Direct to’ for ‘Investment choices’.

When can I buy a guaranteed pension?

Once a year you have the opportunity to buy guaranteed pension. This is on the main expiry date of your pension scheme. In your pension regulations (paragraph 2.1) you can read the main expiry date of your pension scheme. You can find your pension regulations in your Pension 1-2-3 documents (tier 3: legal and policy information). Sign in to my.nn, go to My Documents and click on the link 'to my Pension 1-2-3'.

Are you considering purchasing a guaranteed pension?

Then request a quote.

Request quote

Are you already buying a guaranteed pension with your contribution and do you want to change your choice or do you no longer want to buy a guaranteed pension with your contribution? Please indicate this via 'Request a quote'.