The form of management for Volvo Företagspension is traditional management and the insurance provider is VFF Pension.
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.
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 September 1, 2021 the bonus interest rate is 6%.
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 Terms & Conditions, which you find on the page Forms and Documents.