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.
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.
Bonus interest rate
As of April 1, 2020 the bonus interest rate is 2%.
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.