Traditional asset management
Traditional management means that VFF Pension handles your assets and as a policyholder you are guaranteed a certain amount when you start withdrawing your pension. With traditional management you get a guaranteed interest rate and when the operation generates a surplus, a bonus is also awarded. The bonus is not guaranteed and may vary over time.
Our sustainability work
VFF Pension’s products promote environmental and social characteristics.
VFF Pension also considers negative consequences for sustainability factors in investment decisions and thus in our insurance products.
Read more about our sustainability work here.
What pension will you get?
Your pension is based on paid-in premiums and guaranteed interest. The guaranteed interest depends on when the premiums were paid. Your pension pot is based on paid-in premiums and the guaranteed interest, which at present is 0.7% before deductions for fees and taxes. Any return over and above the guaranteed interest is not assured and may increase or decrease over time. The size of your pension also depends on when you start drawing your pension, and the length of the payout period that you choose. Pensions received are taxed as earned income.
VFF Pension uses life expectancy assumption to calculate the size of the pension in the event of lifelong payment. VFF Pension uses gender-neutral life expectancy assumptions, ie we calculate the same average life expectancy for all insured persons regardless of gender. The current life expectancy assumption that VFF Pension uses is 21.83 years for an insured 65-year-old, ie for lifelong payment we expect to pay a pension until you have reached 86.83 years.
Bonus interest rate
As of November 1, 2022 the bonus
interest rate is 0%.
With Repayment cover
Your insurance always starts with repayment cover. If you pass away, your pension is paid out to your spouse/cohabitee/registered partner, and if there is none then to your children. You can choose to amend the above payment sequence, or to totally remove the repayment cover. You can make this change by filling in the Amendment to Beneficiary Claim form, which you find on the page Forms and documents.
Without Repayment cover
If you opt for insurance without survivors’ protection, in the event of your death before pension pay-outs have been initiated, or during the payment period, your insurance capital reverts to, and is divided among, the other policyholders. This is known as inheritance gains. Inheritance gains means that those who opted to exclude survivors’ protection get a somewhat higher pension. If you do not have any possible beneficiaries, you should opt for “without survivors’ protection”. You may add survivors’ protection up to the time your pension pay-outs are initiated. You can make this change by filling in the Amendment to Beneficiary Claim form, which you find on the page Forms and documents.
Payment of your pension
Approximately 4 months prior to reaching the age of 65, you will receive a letter with information regarding the payment of your pension. This is when you need to make a decision on when you would like to initiate your pension payments and over what period of time, in years, you would like them distributed. If you would like to initiate payment of your pension prior to the age of 65, your will have to contact us.
Pensions are normally paid over a period of 5 years between the ages of 65 and 70. Payments cannot be initiated before the month after you have reached 55, and no later than the month in which you reach 70. Pension payments are taxed as income from employment.
If you want to start drawing your pension,
here is the form you need to fill in!
The company pays a premium as agreed into your Volvo Företagspension.
0.5% in premium fee
0.3% in annual fee on pension assets
Read more in Terms & Conditions, which you find on the page Forms and Documents.
Time bank exchange
In addition to the agreed contribution you can enhance your occupational pension, if your employer offers this, by converting time bank hours into pension premiums. As well as receiving a higher pension, the company also adds approximately 5.7% extra to your time bank, which will further increase your future pension. Time bank Exchange is done in connection with your time sheet report, please contact your HR department for further information.