Monday, June 20, 2016

Pension Decisions have consequences – Västerbotten Courier

Economy. Many retirees are surprised when the pension is reduced sharply after five-ten years. Not everyone is aware of the consequences of picking out occupational pension in a short time – something that a high percentage want to do.


the pension consists of different parts. Service pension is the part you get through your employer. About 90 percent of those who work are occupational.

Occupational pensions may be defined benefit or defined contribution.

Today the most common with a defined, which means that the employer pays a set amount each month .

the pension amount is then determined by the returns and fees.

Source: Pension Agency

Several studies have shown to many Swedes worry that pension would not be enough to live on.

While there are many retirees who choose to pick their occupational pension in a short time, a trend such as pension company AMF seen. That means more of the wallet in five or ten years, but then significantly less. AMF’s security economist Dan Adolphson see a little contradiction in how people think and act on their retirement.

– I do not think everyone is aware of the consequences of the choices made. We have 70-year-olds who call us and wonder why they suddenly do not get any money, he said.

Different setting

In a survey Novus made on behalf of the pension insurance accounted more than a third of respondents said they want a bigger monthly amount for a shorter time, while about one in ten would like to have it all out at once. Four out of ten would rather have a smaller amount per month as long as they live.

like to have more money to live on as a recently retired, referring to one then still have good health and strength, can for some to be a rational reason to choose a temporary withdrawal of the occupational pension.

But today we are living longer than previous generations of retirees, says Eva Fluhr, pensions expert at the Swedish pensions Agency.

– Many 75-year-olds are very fit, she says.

Check your insurance

Pension Agency also get questions from disappointed seniors once the occupational pension is suddenly over.

– Pension Fund is different and may have different payment times by default, so you must examine yourself. In some cases it may also have tax consequences to take out much at once, if it is above the threshold for state income tax, says Eva Fluhr.

Before you decide how occupational pension should be taken out, make a forecast on, calls Dan Adolphson the AMF.

– When you see how much pension you get with different options.

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