“Pension? To me, that always felt like a topic for older people, until I realised I can start taking measures now to ensure I retain my lifestyle later in life.”

Reviewing the status of your pension should be a routine matter, just like you check your salary, take out insurance, discuss a mortgage with your bank, have a medical check-up or visit the dentist. It’s one of those things you need to do once in a while, and every time you have, you’re relieved.

Pension is an important employment condition, no matter what age you are. Your pension plan not only provides you with retirement income, it also covers occupational disability insurance and benefits for your surviving dependants. That's why it's important to register (Dutch only) your live-in partner at ING CDC Pensioenfonds if you're not married and don’t have a registered partnership agreement. Your pension is in fact a deferred part of your salary. You and your employer pay contributions into your pension fund every month. For 2020, your part of the contribution amounts to 7.5% while your employer contributes 24%. You’d probably like to know what the pension fund does with that money.

“I spend about one day a week working to earn my pension. What else can I do?”

Will I get a pension at all?
Among young people, 70% believe there probably won’t be enough money in their pension fund to pay out their pension by the time they retire. They're wrong. Yes, the standard retirement age is rising and, yes, it's your own responsibility to ensure you’ll have enough retirement income. But you will have a pension. The Dutch state will pay you a state pension (AOW), your employer will pay you a company pension and you yourself can invest or save for your retirement as well. Most of the pension you’ll get from your company pension plan isn't generated by pension contributions, but by the return on investments made by your pension fund. Your money makes a much higher return through the pension fund's investments than through your bank savings account.

“I consider my pension when I get a new employment contract.”

What effect will a career move have on your pension?
Once a year, you should check whether your pension is on track. For example, when you receive your Uniform Pension Overview (UPO), which provides you with all your pension details. Any career decision you make will have an impact on your financial situation. If your career move means you’ll be earning more, it means you’ll have more financial leeway now and later in life. If you decide to switch to part-time work, it means you’ll build up less pension. So if you're considering a career step, make sure you check the pension plans involved, the consequences for your pension accrual and the pros and cons of a value transfer. Use the ‘On Track’ module of our Pension Planner to check:

• The amount of pension you’ve accrued through ING's pension plan and any preceding employers’ pension plans you've taken part in.
• The amount of pension you would probably accrue if you didn’t change jobs.
• Whether your current income and expenditures match those you expect to have later in your life.
• What action you could take to address any mismatch.

This article provides an outline of trends in society as well as some general information. Would you like to read articles relevant to other age groups? Select the age group at the upper right side of the screen.