When you have a new job, you often also get a new pension scheme. You can choose to leave your accrued pension with your old pension scheme. The other option is to transfer the accrued pension to your new pension scheme. But what is the best thing to do for your retirement? Below you can read what considerations you need to make.
Contents
- Why pension value transfer?
- Take your pension with you or leave it?
- Consult a pension advisor
- Within what period do you have to make the choice?
Why pension value transfer?
With a new employer you will most likely have to deal with a different pension fund. You will have to choose whether you want to take the pension you have already accrued with you or leave it. There is something to be said for both options. By transferring the pension to the new pension fund, your pension accrual becomes more transparent. After all, there is only one pension overview instead of two or more. It also means that you will only receive a pension from one pension fund when you reach retirement age.
Take your pension with you or leave it?
The decision will have to be made whether it makes sense to take the pension with you. Whether it makes sense depends on several things.
Clarity
As indicated earlier, there is only one pension fund with which you are dealing. This can be a reassuring thought and clear for many people.
Pension deficit
It is important to find out whether you could end up with a pension deficit due to a possible value transfer. Taking your pension with you or leaving it behind can cause a pension deficit.
The conditions of the various pensions
It is important to find out which pension has the best conditions. For example, take a look at which pension gives the best guarantee for the amount of the pension. It is also important to find out which pension scheme increases the pension the most annually.
Consult a pension advisor
It is of course not easy to determine for yourself which pension is best for your future retirement. If you cannot resolve it yourself, it is best to consult a pension advisor. You can usually consult a pension advisor working at your old or new pension fund. They often give you free advice. If you provide some general information, the pension advisor will request the policy of the other pension fund and make the comparison. After the pension advisor has provided advice, you can easily make your own choice.
Within what period do you have to make the choice?
If you want to transfer the accrued pension, you must arrange this within six months. You can arrange this by indicating to the new pension fund that you want the value transfer. After the value transfer, you no longer have a pension with the old pension fund. There are also pension funds that do not make a fuss after the six months have expired, but they are no longer legally obliged to cooperate.