What's your plan?

A reliable pension plan ensures a comfortable retirement.
This applies both when you are actually saving up - and when you have attained an age
where payout is approaching. No matter what, we have the tools to guide you to a good plan.

 
 

Are your savings sufficient?

If you are under age 55, you should focus on your savings and whether they are sufficient to fulfil your expectations of retirement.
  

Your pension estimate reflects your prospects for the future 

The Pension Estimate indicates whether your savings are sufficient.

For example, if your Pension Estimate is 80, you can expect to have approximately 80 per cent of your present salary at your disposal for 20 years from the day you retire.

PFA recommends a Pension Estimate between 70-80

In order for your future living standard to approximately match the one
you have today, we recommend a Pension Estimate between 70 and 80.

Your savings plan points you in the right direction

Your Pension Estimate can be regarded as a compass which you can use to
steer by: If your prospects for the future do not match your wishes, you should
change course.

Using the savings plan at My PFA makes it easy for you to see how it will affect
your future if you pay just a little more to your pension plan each month, or if
you postpone your retirement a few years.
  
 

How do you like your Money to be paid out?

If you have reached the age of 55 or older, you soon need to make up your mind about how you want to have your money paid out.
What is the time frame for your pension payout? And, in which order of priority?

 

 

View your annual payouts - and adjust your plan

The payout plan at My PFA provides you with an overview of how much we expect
that you will receive in retirement - and when your money will be paid out (forecast).

You can make your own adjustments to the payout plan, for instance by changing the payout periods. You may also enter the value of your other savings, your residential property etc., so that your savings plan can provide you with a total overview.

 

It's all about optimisation

It is important to consider the order in which you spend your retirement funds in order to get the most out of your total savings. The optimum order depends on your needs, the return potential of your funds, tax matters and public benefits. On top of this, you also need to bring your partner’s financial situation into the equation. Below is an example of a spending order:

  1. Early retirement pension (provided that you have saved for early retirement and that you stop working before reaching the public retirement age)
  2. Public retirement pension, ATP and any early retirement premium and tax credit
  3. Available funds
  4. Pension funds (incl. any LD)
  5. Frozen property tax
  6. Home equity loan

 

Spending your retirement savings

First, lifelong pensions
You should break into your lifelong pension as soon as possible. Lifelong pensions are a good way to ensure that you can make ends meet for as long as you live. Together with public retirement pension, lifelong pensions provide a financial foundation that allows you to spend other pension savings and available funds without the fear of running out of money.

Home Equity
If home equity forms part of your pension savings, you should consider setting up an offset mortgage account while you can – meaning while you are still working. It may also be worth considering refinancing your mortgage.

Available funds
Often, available funds carry a low rate of interest and the returns are heavily taxed. Therefore, these funds should be spent before any endowment pension and LD funds.

Flexible instalment pensions
You can postpone or prolong the payouts form your instalment pension. This way, you can optimise your savings so that you may still receive the public retirement pension supplement and, at the same time, reduce the amount subject to the highest tax rate and equalisation tax. For instance, if you prolong your 10-year instalment pension to 15 or 20 years, you may be able to completely avoid having to pay the highest tax rate as a retiree. If your income tax rate is below 40 % as a retiree, or if you do not need a large lump sum when you retire, it may be a good idea to change your endowment pension to a life pension or an instalment pension and thus spread the payouts over, for instance, 10 years or the rest of life. Please note that regular payouts are set off differently against public retirement pension, early retirement pension, etc. than lump sum benefits.

Endowment pension and old-age savings
Endowment pensions and old-age savings can be paid out all at once, or you can leave the money with PFA until you need it. This way, your savings will continue to generate returns. You can also choose to reinvest the money through PFA Bank and get a strong return potential along with flexible payout options. It is also possible to split the payout into smaller portions or convert the endowment pension to an instalment pension. This may be a good idea if you do not pay the highest tax rate and don't stand to lose the public retirement pension supplement. You can also use the money to pay down your mortgage – however, this may involve a risk if the terms for mortgage loans change and you are planning to turn property value into cash at some point in time. Some also choose to reinvest the money (after taxes) in a life pension.