Do you have a pension gap? Find out how to close it
Worried that you have a pension gap? You're not the only one. Most Dutch people have not built up enough pension to live comfortably on after retirement. In this blog post, we discuss what a pension gap is, how to calculate it and what you can do to close it.
What is a pension gap?
A pension gap is the difference between the pension you receive and the income you need to continue your desired lifestyle after retirement. This gap can occur due to several factors, such as:
- Too low a pension: This may be because you:
- Never accrued a pension or accrued too little.
- Your pension is based on a lower salary than you earn now.
- Your pension fund has cut benefits.
- A higher desired standard of living after retirement: If you want to spend more after retirement than your current retirement income allows.
- A longer life: Life expectancy has risen sharply in recent decades, so you should be able to live longer in retirement.
How do you calculate your pension gap?
There are several ways to calculate your pension gap. The easiest way is to compare your annual pension accrual with your desired annual pension benefit. You can use Nibud's pension planner for this purpose.
Another way to calculate your pension gap is:
- Go to mypensioenoverzicht.nl.
- Log in with your DigiD.
- View your pension statement.
- Compare the amount you receive with the amount you need.
What can you do to close your pension gap?
There are several things you can do to close your pension gap:
- Start on time: The earlier you start saving, the more time your money has to grow.
- Save extra: You can save extra through a bank savings account, investment account or annuity insurance.
- See if you can increase your pension: This can be done by:
- Working longer.
- Part-time retirement.
- Selling your pension.
- Reduce your expenses: See where you can save to lower your expenses after retirement.
At buro philip van den hurk, we are happy to help you create a plan to close your pension gap. We will discuss your personal situation and advise you on the best steps you can take to secure your financial future. Please contact us for a no-obligation consultation.