14 Apr Retire soon and corona crisis
At LifeSight you accrue pension capital by investing. When you retire, your accrued pension capital is sold. This money is exchanged for a lifelong pension from the insurer you choose.
Due to the corona crisis, the value of your pension capital may have quickly decreased. Whether and how much your capital has decreased depends on your investment mix. The conditions and rates of the insurers under which you exchange your pension capital for a lifelong pension on the retirement date may also have changed. In both cases, your pension capital – and therefore your lifelong pension – may be lower than expected.
If your pension is lower than expected, you have a number of options.
- Postpone the moment you retire while you remain employed by your employer. In that case, you will exchange your pension capital for a pension after your normal retirement date. During this period, the level of your pension capital will hopefully rise again as the stock markets recover. However, it is not certain whether this will happen immediately after the corona period. During the postponement period, premiums will be paid and you accrue extra pension capital.
- Part-time pension. You will work part-time and partly retire. Part of your pension capital is then exchanged for a pension, the rest remains invested. For that part, you purchase a pension benefit later.
- You stop working, but wait to exchange your pension capital for a pension. In that case, premiums will no longer be paid. During the postponement period, the stock markets will hopefully recover. With this option you must of course have enough money available for living during the period until the pension will start.
- You choose a variable instead of a fixed pension. You will then receive a lifelong pension, but the insurers will invest part of your capital. If the stock markets increase in the future, your pension will increase. However, if the stock markets go down, your pension may also be reduced in the future.
You can only choose options 1, 2 or 3 if they are included in the LifeSight pension plan. These options are also subject to conditions and terms, which are stated in the regulations. It is also necessary for options 1 and 2 to make arrangements with your employer.
You will be notified by LifeSight 9 months before you retire. Would you like more information, help or advice? Then contact your own pension advisor. Or contact the Apple Tree advisor. Apple Tree specializes in giving advice on the choices you have when you retire. They can be reached on 020 – 470 09 20 or via firstname.lastname@example.org.