Varying the amount of your pension
When you make your pension choices (approximately three to six months before your pension commencement date), you can choose to receive a higher pension for the first five years after reaching State Pension (AOW) age, followed by a lower pension for the rest of your life.
Your pension remains variable. However, your variable pension will be increased by 10% during the first five years.
After these five years, your lifelong variable pension will be 10% lower.
The additional pension paid during the first five years is financed from your own personal pension capital.
What should you consider before making this choice?
A higher pension during the first five years may affect your entitlement to certain government benefits.
A higher pension income may:
result in higher income tax;
reduce your entitlement to housing allowance; or
reduce or eliminate your entitlement to healthcare allowance.
For this reason, we recommend that you carefully consider this option and seek appropriate advice. You can contact us for more information and an explanation of the consequences of this choice.
Please note: this is a one-time choice that you make when your pension starts. Once you have made this choice, it cannot be changed or reversed.
Would you like more information or would you like to know exactly what our pension plan offers you? Please read the Pension Regulations.
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