Choice stable or variable pension

What happens to my pension capital until I actually retire?
Each year, we use part of your pension capital to purchase a stable pension for you. We do this in the following way:

• Are you exactly 58? If so, we convert 1/10 of your capital. The subsequent year, we convert 1/9, the following year 1/8 and so on.
• Annually, we purchase pension for you until you retire. Have you decided to retire early? Then, using the pension capital you still have, we effect a one-off purchase of a pension.
  
  

What will I receive when I retire?
You will receive a stable pension from us. And you’ll receive it each month for the rest of your life.

How does that work in the context of investing?
Until the time I retire
We will continue to invest any of your pension capital that has not been converted into a pension. Here you can see the way we do this 

From the time I retire

You will receive a stable pension from us. This means that your pension does not experience any large fluctuations due to positive or negative investment results. Although we may have to reduce (cut back) your pension if our financial position requires we do so. Or we may raise your pension if we have sufficient funds to do so (indexation).

What are the advantages?
Until the time I retire

• We spread the interest rate risk by gradually purchasing a stable pension. 
• We spread the risk of disappointing investment results by gradually purchasing a stable pension.
• We will be able to increase the pension we have purchased if our financial situation permits. We refer to this as indexation.
• The pension we have already purchased for you will not immediately be affected by disappointing investment results. 
• If, despite everything, we have to reduce (cut back) the pension already purchased for you, we will do so very gradually.
  
  

• You know approximately how much you can expect to receive from us each month.
• We will be able to increase your pension if our financial situation permits. We refer to this as indexation. Your pension is not immediately dependent on the investment results.

What are the disadvantages?
Until the time I retire

• You will profit less from positive investment results.
• The pension we have purchased may be reduced if our financial situation requires. We refer to this as a ‘cut back’.

From the time I retire

• It is not possible to transfer your pension to another pension provider.
• We may reduce your pension, if our financial situation requires. We refer to this as a ‘cut back’.
• You will profit less from positive investment results.

What happens to my pension capital until I actually retire?
We continue investing all your pension capital until the time you retire. When you retire, you can reconsider the choices regarding your pension. You can find more information in this respect under ‘The choices you exercise when you retire’.

What will I receive when I retire?
Are you retiring? If so, you can choose to make a one-off purchase of a stable pension with Pensioenfonds PGB. Or you could choose to transfer your pension to another pension provider. We will provide a proposal in respect of a stable pension with us. However, you personally have to ask for a variable pension proposal from one (or more) other provider (providers). This means that your pension will always be dependent on the investment results of the other provider.

How does that work in the context of investing?
Until the time I retire
To minimise the risks of disappointing results, we invest your pension capital using a prudent investment profile. When investing, we take account of the fact that at a later stage you would like a variable pension. And that, even after you retire, you are prepared to run an investment risk. Here you can see the way we do this.

From the time I retire
A variable pension means that your pension will always be dependent on investments. When you retire, you cannot purchase a variable pension with Pensioenfonds PGB. You have to do so with another provider. The level of your pension then depends on the investment results of this other provider.

What are the advantages?
Until the time I retire

• You will profit from positive investment results.
• We cannot reduce your pension (cut back). However, your pension accrual is dependent on our investment results.

From the time I retire

• You are free to transfer your pension capital to another pension provider. You exercise this choice shortly before you retire. You can receive a variable pension from another provider. This means that you can continue to invest after your retirement date.
• You have a chance of a higher pension if the investment results of the other provider are positive (the interest rate and life expectancy also play a role).

What are the disadvantages?
Until the time I retire

• You run an investment risk. Investment results can be negative. 
• We do not increase your pension capital (indexation) even if our financial position allows.

From the time I retire

• You run the risk of a lower pension with another provider. You will receive a lower pension if the investment results of the other provider are disappointing. 
• When you retire, would you like to make a one-off purchase of a stable pension with Pensioenfonds PGB? If so, you will be dependent on the interest rate at that moment in time. The interest rate influences how much pension you can purchase.

• You would like as much certainty as possible about the level of your pension.
• You attach more importance to certainty than to the chance of a higher pension through investment results. 
• You could encounter financial problems if your pension income were to fall.
• You would not be able to sleep easily after retirement if your pension was likely to be (much) lower one year than the other.
• You would rather spread the interest rate risk. The interest rate influences how much pension you can purchase from your pension capital.
• You would like the chance of us increasing your pension if we have sufficient funds to do so (indexation).         

• You attach more importance to the chance of a higher pension than certainty about your level of pension.
• You understand that your pension will be lower if the investment results are disappointing. 
• You would not encounter any financial problems if your pension was reduced by up to 15% due to extremely disappointing investment results. 
• You understand that you will run a higher interest rate risk if, at a later stage, you decide to make a one-off purchase of a stable pension with us. This is because you will be purchasing all your pension at the same time. At that time, the interest rate could be favourable but it could also be unfavourable. The interest rate influences how much pension you can purchase. 
• You want to be free to transfer your pension capital to another pension provider when you retire. (N.B.: You will not be able to purchase a stable pension with this other provider.)

How does that work?
When you retire, you make a one-off purchase of a stable pension with Pensioenfonds PGB. That means you will receive a stable monthly pension from us for the rest of your life.
 
How does that work in the context of investing?
You will receive a stable pension from us. This means that your pension does not experience any large fluctuations due to positive or negative investment results. Although we may have to reduce (cut back) your pension if our financial position requires we do so.

What are the advantages?

• From the moment that you have purchased a pension, you know what pension you can expect to receive. We refer to this as a stable pension.
• Your pension does not experience any large fluctuations due to (negative) investment results.
• Whenever our financial situation permits, we will be able to increase your pension (indexation).

What are the disadvantages?

• You use your pension capital to make a one-off purchase of a pension. That means you are dependent on the interest rate at the moment of purchase. This could turn out to be disadvantageous.
• Your pension does not immediately rise due to good investment results.
• We may have to reduce your pension because our financial situation requires us to do so; if we are forced to do so, we will do so gradually (in stages).

How does that work?
Pensioenfonds PGB does not offer a variable pension. Would you like to continue investing after your retirement? If so, you should ask for proposals from other providers. You then transfer your pension capital to the provider of your choice and you will receive a variable pension from that provider. You cannot choose to have a stable pension with another provider.

How does that work in the context of investing?
Are you transferring your pension capital to another provider? If so, your variable pension from that provider depends on that provider’s investment results.

What are the advantages?
You have a chance of a higher pension if the investment results of the other provider are positive (the interest rate and life expectancy also play a role).

What are the disadvantages?

• Your pension is variable because it is dependent on the investment results of the other provider. These could be positive; but they could also be negative. The amount of your pension also depends on the development of interest rates and average life expectancy. Each year, your pension could rise or fall by up to 15%. 
• Your pension will not be raised even if the financial situation of that provider allows (we refer to that as ‘indexation’).

Yes, that’s correct. Participants have only had this choice since the end of 2019. This choice is, therefore, new. Were you older than 58 at the end of 2019 and were you not offered this choice? If so, you will receive a stable monthly pension from us. We gradually purchase pension for you until you retire. You can, therefore, no longer opt for a variable pension. Nor is it possible for you to opt to transfer your pension to another pension provider on your retirement date.

We cannot decide what the best choice is for you. However, we try our best to help you make a personal choice. That is why you automatically receive information when you have to exercise a choice. You can also contact us if you have any questions or need help when choosing. You can phone us on +31 (0) 20 541 82 00 or email us via ks@pensioenfondspgb.nl. Prior to making a choice, you may also like to seek assistance from a financial adviser.

Did you opt for a stable pension around your 58th birthday? If so, your choice is final. When you eventually retire, you will receive a stable pension from us.

Did you provisionally opt for a variable pension around the age of 58? If so, you can subsequently (but only once) opt to have a stable pension. We will then gradually purchase a stable pension for you. Otherwise, we continue investing all your pension capital. Are you retiring? If so, at that moment, you have to make a final decision as to whether you want to make a one-off purchase of a stable pension with us, or receive a variable pension from another provider.

We deem it very important for you to make a conscious choice about your pension. Consequently, once you have read all the information, we ask you to let us know your choice via mijnpgbpensioen.nl. If you fail to pass on your choice to us, we will then gradually purchase a stable pension for you. In which case, you will no longer be able to choose to continue investing all your pension capital.

Yes, you will be offered the choice. You will be sent information regarding making this choice. Have you opted for a stable pension with Pensioenfonds PGB? If so, we will gradually purchase a stable pension from your pension capital. We spread these purchases over the years until you retire. Have you opted for a variable pension? If so, we will continue to invest all your pension capital until you retire. 

The new pension may have an impact on the choice you made. It depends on the new pension-related choices made by your employer or the sector. We therefore do not yet know exactly how it will affect you.

This is what we do know

• If your sector or employer opts for the solidary contribution scheme, the choice you made for a variable or stable pension will no longer apply. Your entire pension will be converted into your pension pot. Everyone in the solidary contribution scheme receives a variable benefit from Pensioenfonds PGB. In addition, from 1 January 2027, it will no longer be possible to transfer your pension capital to another pension provider. Read more about the solidary contribution scheme.
• If your sector or employer opts for the flexible contribution scheme, your choice for a 'stable' or 'variable' pension will remain, but from 1 January 2027, it will no longer be possible to transfer your pension capital to another pension provider for a variable benefit. If you choose a variable pension, Pensioenfonds PGB will pay this out for you. Read more about the flexible contribution scheme.