Look at the pension choices for spending now, in the future, to the legacy

the Dutch have more and more old age care. Due to the severity of the plans was the development for a period of time on the course, and with the introduction of a new pension system that is only going to get bigger. In addition, it is important to think carefully about the spending, now and in the future as it is about the legacy, " explains a professor of empirical micro-economics, Marike Knoef out.

In the last two decades of the last century, retirement is pretty simple. Most of the people are built up automatically to a pension by their employer. They'd only have to worry about that and be able to be assured that it's going to be a good old age. Due to various reasons, however, they need more and more of his own choices.

"From what we know about the new pension contract it appears that it has far more potential for the future, choices to make. In addition, we are becoming more and more self-employed persons who are responsible for their pension," says Knoef, which, in addition to professor of economics, also a member of the board of pensioennetwerk Until.

An example of a new choice available, which is likely, then, is to be at the time of retirement of 10% of the pension lump sum is received. It is also referred to as a "lump sum". Another example is that, since 2016, this so-called contribution scheme you should be allowed to choose whether or not they are in retirement wish to doorbeleggen, or would prefer to have a lump-sum cash benefit to go to.

a total Picture of the financial, retirement,

for example, If people have to choose, it is important to get an understanding of their finances, " explains Knoef out. "Employment pension is only one source of income. People also have a state pension, and any pension that they are self-closing, deposits, and about 60 per cent of the households have a house of their own. These are all things that the people in the picture would need to take. And it's also about how much money they will need it."

Expenses for the children, and inheritance

in this context It is important to understand how the expenses up to retirement, it look like she is going to continue. That determines how much, if you'd like to save for retirement. "You want to get your money nicely distributed over your entire life. Moreover, the children have a great role in this. That will make sure that you get as a household, to those in need of money than at any other time. Later, the students may provide support, or a legacy to follow."

“the Pension is a form of insurance for the risk that you may live long.”

How do these considerations, then, with a choice of a lump sum? "It's about the pattern of expenditure in retirement. For example, if you have a mortgage that is in your seventies is repaid in full so you are less payments, there may be a reason for a "lump sum" to go to. Then there is the desire to make money is to let them have a role in this. A pension is a form of insurance for the risk that you may live long. If you accidentally short lives, do you think it doesn't matter if there are a lot of in your bank account due to the " lump sum."

Stick to the choices < / p> Knoef recommends that, in any event, the time to make a plan and then stick to it. "If something unexpected happens, it can be a very good reason to have a plan to change it. But, in general, that is, if there are no unforeseen events, the plan may continue to be."