Cookies on the website

Cookies zijn kleine stukjes informatie die door uw browser worden opgeslagen op uw computer, tablet of telefoon. Onze website en portal maken gebruik van functionele cookies die noodzakelijk zijn om de website of portal goed te laten functioneren. Daarnaast passen wij cookies toe om het gebruik van de website of portal te kunnen analyseren en de gebruikersvriendelijkheid te verbeteren.

Ok

Pension123 Layer 2 The amount of your pension is not fixed

Print this page

What are the risks?

Pension accrual and pension payment cover a very long period. From the beginning of accrual to the last pension payment may take 80 years. Over such a long time, the world changes and there may be risks that threaten your pension. These risks could lead to a shortfall.

In the article 'Reliable management of your pension capital' you can read about the various risks and how they are managed.

Staples Pension Fund strives to be prepared for risks that could affect your pension. For instance, due to the rapid increase in life expectancy, which has been faster than the increase that we accounted for. As the average age of the scheme members increases, pensions have to be paid for longer. The pension fund therefore needs more money than was originally calculated.

The level of interest rates also affects the value of pensions. Pension administrators make an estimate in advance as to how much money they will need to be able to pay pensions. As interest rates go lower,  Staples Pension Fund needs more money in ‘cash’ to be able to pay all the pensions at a later date. If interest rates stay low for a long time, this makes the pensions expensive.

Also, the results on investments can be lower than expected. For this reason, Staples Pension Fund ensures that its investments are diversified across several types of investment. Profit on one investment can make up for a loss on another investment. A pension administrator can also hedge investment risks, but this also involves costs.

There are other risks that  Staples Pension Fund has to take account of in order to protect your pension as effectively as possible. The pension fund therefore literally must manage these risks. Further information on risk management at  Staples Pension Fund is available in the annual report.

With effect from 2015, pension administrators have to take account of what is known as the policy funding ratio. The policy funding ratio is the average of the last 12 funding ratios. Decisions by the pension fund board regarding policy with respect to the amount of the contribution and indexation are mainly based on the funding ratio of the pension fund. 

What if things go better or worse than expected?

For the first time, since 1 October 2019, the website www.mijnpensioenoverzicht.nl will present an estimate of your pension if things go better or worse than expected in the future. You will see an estimate of your total pension, including the state pension and various scenario-based amounts. You will find more information about these scenario amounts in the frequently asked questions.

Also in the Uniform Pension Statement (UPS).

In the 2020 UPS, you will also find an estimate of your pension at Stichting Pensioenfonds Staples if we are faced with any major windfalls or setbacks. Account is also taken of any inflation.

The lowest amount

The lowest amount shown is not an estimate. This is the amount of pension you have accrued up to now. If you stop accruing pension now, this is the gross amount you will receive per year for as long as you live. At mijnpensioenoverzicht.nl, this amount is calculated on the basis that your pension will commence as soon as you start receiving your state (AOW) pension.

The expected end result

Above you will see three amounts. These amounts are estimates of the pension you are likely to receive in various situations. One important assumption for all three amounts shown is that you continue to work and accrue pension in your current pension scheme until your standard retirement age. If you stop working earlier, your pension will be lower.

A large number of future scenarios have been considered. One scenario assumes a positive development with respect to interest rates, investment returns and inflation. Another assumes a negative development. All pension funds and insurers use the same future scenarios in their calculations. You see what your pension will be in three situations.

  • The expected end result is shown in the middle at the top. This is the pension you are currently expected to receive. At this time, there is a 50% chance that your pension will be lower and a 50% chance that your pension will be higher than the amount shown.
  • Under the arrow on the right you see the amount you are likely to receive if the economy does especially well. The chance that you will attain a pension that is higher than the amount shown on the right is currently low (5% of the future scenarios).

Under the arrow on the left you see the amount you are likely to receive if the economy does much worse than expected. The chance that you will attain a pension that is lower than the amount shown on the left is also currently low (5% of the future scenarios).

The expected end result

We have included the effect of prices on the purchasing power of your pension in the estimate. So the amount shown is not the amount that you can expect to receive later on, it is an estimate of what will remain if price inflation is taken into account in your pension. If prices are expected to fall, the amount shown will be (slightly) increased. This applies to all three amounts shown.

The options you have chosen when your pension came into payment are also taken into account.

  • The expected pension is an estimate of your pension in 10 years’ time. At this time, there is a 50% chance that your pension will be lower and a 50% chance that your pension will be higher than this amount.
  • Under the arrow on the right you see the amount you are likely to receive if the economy does especially well. The chance that you will attain a pension that is higher than the amount shown on the right is currently low (5% of the future scenarios).
  • Under the arrow on the left you see the amount you are likely to receive if the economy does much worse than expected. The chance that you will attain a pension that is lower than the amount shown on the left is also currently low (5% of the future scenarios). 

The three possible outcomes take account of inflation. Inflation refers to the situation in which prices of products and services increase. When prices rise, the same amount of money will buy less.

Example: Let's assume you will receive a pension of 100 euros in 10 years’ time and the price of a loaf of bread rises to 2 euros. This means that you will be able to buy less bread with this 100 euros if a loaf of bread now costs 1.50 on average. In 10 years’ time, you will need 100 euros to buy the same amount of bread as you can buy for 75 euros today.

The calculation of the three outcomes takes account of the likelihood that prices of all products and services will rise, as well as the likelihood that your pension will be increased. If things go badly, prices will rise and your pension will not be increased, or only very slightly. If things go well, prices may rise, but your pension will also be increased, so that your pension will keep its value, meaning your pension is 'inflation-proof'.

Under the arrows you see the 75 euros in the example, while you are expected to receive 100 euros. This presentation has been chosen by the government to give you an idea of the purchasing power of your pension.

Choose your language

Term and Conditions

Op het gebruik van deze website is de disclaimer van toepassing.

Bekijk de disclaimer (PDF)



Go to the homepage