Pension services

1. When I retire, my income will decrease

Even if I make monthly payments towards my pension, pension payments from my compulsory pension plan will only amount to half of the income I have had during my lifetime. My income could therefore be halved when I retire unless I put more aside.


Average income per month during working life
Compulsory pension savings

2. Supplementary pension savings means a pay rise

If I register for supplementary pension savings my employer will pay a complementary contribution. My salary will increase by 2% as soon as I start to save and go directly towards my pension savings. My employer's complementary contribution is added to my contribution and the total contribution is therefore double the amount that I save each month.

3. It pays to start early

Returns, interest and compound interest multiply and rise dramatically as the years go by. The first payment towards supplementary pension savings is the most valuable one, as the payment will accrue interest for decades and in the end it will have multiplied.

4. It is all right to take a risk if you have plenty of time

Savings options that deliver high returns generally carry more risk and fluctuate more dramatically. If you are investing for the long term, it is all right for returns to fluctuate as these fluctuations will even out over time. If I start to save late in life it makes more sense to choose safer savings options which generate lower returns. Which is another good reason to start early.

5. My supplementary savings can be passed on to my heirs

Supplementary pension savings are my possession. If I pass away before I have withdrawn all of my savings, it will be inherited by my heirs. That is why saving this way will never be for nothing.

6. I don't pay any tax until I withdraw my savings

Supplementary savings are tax-free until I withdraw my savings. I don't pay income tax on payments made towards my pension and I pay no capital income tax on the returns generated. My money is left to accrue interest right up to the day I withdraw it, which is when I pay income tax.