Traditional management gives you guaranteed interest, currently 0.7%. When the fund generates a surplus, you will also receive a bonus. The bonus is not guaranteed and may vary over time.
VFF Pension is the insurance provider.
The size of your pension pot
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 in the form of a bonus and is not guaranteed.
The bonus interest is 2% as of April 1, 2020
The size of your pension varies depending on when you start drawing it, and the pay-out period you choose. Paid-out pensions are taxed as income from services.
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.
0.5% in premium fee
0.3% in annual fee on pension assets
Read more in Pre-purchase information and Terms & Conditions, which you find on the page Forms and Documents.