Your pension, your choice – but one that has a big impact on your financial future. Will you go for the security of a fixed amount, or for more opportunity for growth with a variable pension? Don’t wait until retirement, start thinking now about the pension that suits your life and wishes. Find out what the differences are between a variable and a fixed pension, which investment profile goes with it, and how you can stay in smart control of your purchasing power. Your pension starts today!
Variable or fixed pension: what’s the difference?
Variable pension: Part of your pension capital remains invested after you retire. This allows your pension capital to grow. If investments do well, your benefits go up. But investments can also do worse. Your benefit will then go down.
Fixed pension: You receive the same amount every year. This provides security, but your purchasing power is likely to decrease due to inflation.
Look already which investment profile that suits you
It’s not until you retire that you definitely choose a variable or a fixed pension. Still, it’s smart to think about it now. Because your choice later is consistent with how you invest now.
What is an investment profile?
Your investment profile determines how much risk you want to take with your retirement money. You can choose from:
- Ambitious profile: you take a little more risk, for potentially more returns. This suits a variable pension with less stable benefits.
- Neutral profile: you take a little less risk, with a little more security. This suits a fixed pension with stable benefits.
- Retained profile: you take little risk, with more security. This profile also suits a fixed pension with stable benefits.
Which choice suits you?
Your retirement may seem a long way off. But your choices today determine how much pension you will get later. Want to know which profile suits you? Use the Investment Guide: a handy tool that helps you make a choice that’s right for you.
Want to learn more about investing with DC capital or the different investment profiles? Then look here. Do you have a question? Then please contact us. We will be happy to help you.