"I want to be able to make my own choices later in life, which is why I’m sorting out my pension now."

Your career is only just starting, so why worry about your retirement already? It's only natural that you feel that way. After all, your pension builds up automatically anyway, and it will pay out decades from now. But when you think about it, you do want to have enough income to live comfortably when you retire, don't you?

ING pays a fixed contribution into ING CDC Pensioenfonds every year. You and your employer both pay into that contribution. Your employer pays the largest part of the contribution. The amount you pay is specified in your collective labour agreement. You pay your contributions by way of monthly instalments which are deducted from your pre-tax salary. Your pension fund uses the contributions to make investments.

Protection for the present
Your employer's pension plan will provide you with a supplement to your Dutch state pension (AOW), which almost all people living or working in the Netherlands are entitled to receive from their AOW retirement age until they pass away. Did you know that your pension plan also provides you with protection before your retirement? For example, if you become occupationally disabled, your pension continues to build up. And your partner and children will receive a monthly pension if you pass away while you’re employed by the company. That's comforting to know.

So everything is covered?
Your pension is something you build up automatically. So why does the pension fund want you to keep track of things? Several important events in your life, like getting a new job, have a direct impact on your pension. You need to be aware of that! For practical tips, visit detijdvanjeleven.nl. Whether you get a new partner, job or home, make sure you understand the impact on your pension before you sign anything!

Pension pillars
Your income for later will comprise your Dutch state pension (AOW) plus your employer's pension. It’s up to you to decide whether that will be enough. Everyone has their own lifestyle. Several events in your life will have an impact on the amount you'll get in pension benefits. Low interest rates are requiring pension funds to take measures aimed at ensuring they will have enough funds to pay their future pension commitments. That's why ING CDC Pensioenfonds has had to cut the pension accrual rate for 2020, which means you’ll build up less pension in 2020. Additional contributions are not allowed in this pension plan, but you can take your own measures, like setting aside additional savings for your retirement.

Private pension savings
One way to save for your pension is by utilising your annual tax-deductible margin. Do you know what that is? It's the difference between your pension accrual and the maximum amount of tax-deductible pension you're allowed to build up under Dutch tax law. You can use your annual tax-deductible margin to supplement your pension with annuities. The premium you pay for the annuities is tax deductible. The annual tax-deductible margin is specified as 'factor A' on your Uniform Pension Overview (UPO). Use your DigiD to login to My Pension and open your Uniform Pension Overview (UPO). Go to the calculation tool for annuities (Rekenhulp Lijfrente) provided by the Dutch tax authorities at www.belastingdienst.nl.

For more insight into the status of your pension and the options available to you, check the Pension Planner (login with your DigiD). Or consult a financial expert for advice on your financial situation.

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