What to do with a lower pension

Because of the lowering of the pension built-up percentage, beneficiaries of the pension built up less pension. The maximum pension built up is now 1.875% instead of the old 2.15%. Maximising the wage to €100.000 over which pension premiums are paid also has an impact on your future pension. According to calculations by Zwitserleven the setback in pension and partner pension will be more than 14%.

This setback is not visible, but at the start of the pension it will be noticeable. On the website mijnpensioenoverzicht.nl you can find your (future) pension here, but make sure that the new percentage has been processed. If you need help with the Dutch website, please do not hesitate to contact us at info [at] lupacompany.com.In any case, your pension will be considerably lower. What can you do about this? What does your future look like?It is good to know when you retire, the following sources of income are at your disposal. These sources combined form your old age provision.

1. General Old-Age Pensions Act (Dutch; AOW)
2. Employment pension
3. Annuity or bank saving
4. Wealth
5. Working after retirement

These sources can be used separately and  you can determine how much each source contributes to your personal old age provision. If you plan to continue working and this is a viable plan, you will need less additional pension. Even if you have wealth in the form of savings, investments, or paid mortgage you can make do with less pension.It is important to make a financial plan early on. In this financial plan you can make a list of the abovementioned sources and how to utilize them. It is also important to see what your expenses are after you retire.

Sources:

Fd of the 13th of May 2015

Nibud

Zwitserleven.nl