How we adjust your pension each year
When you retire, your personal pension capital is split into two parts:
Pension payment capital: this is used to pay your monthly pension.
Investment buffer: this is where positive and negative investment results are temporarily stored.
Your pension amount is reviewed once a year, on January 1. The review is based on the results up to the end of October of the previous year.
You can track your personal pension capital throughout the year in My Pension. The amount can change each month for several reasons.
Your pension payments
Every month, the pension you receive is paid from your personal pension capital.Protection return
This helps reduce the impact of changes in interest rates on your pension.Extra investment return
This is the profit or loss from investments after the protection return has been applied. If you are receiving a pension, around one-third of this result is allocated to your personal pension capital.Life expectancy results
People sometimes live longer or shorter than expected. This can have a positive or negative effect on your personal pension capital.Solidarity reserve
This is a shared reserve for all participants. It may help prevent your pension from decreasing when results are disappointing. The reserve can only be used if there is enough money in it.Costs
Investment management and trading costs are deducted from investment returns before they are shown in My Pension. Part of the administration costs of the pension fund is also deducted from your personal pension capital. You can find more information about these costs on our website.
Positive and negative investment results are not applied to your pension all at once.
Instead, they are spread over three years. Each year, one-third of the result is included in the calculation of your pension. This helps keep changes in your pension more stable and avoids large increases or decreases. Your pension is adjusted once a year, on January 1.
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