DB versus DC
- Defined Benefit (DB) pension plans provide guaranteed pension terms at pension age. There is no investment / interest rate risk. Which now makes these plans extremely expensive.
- Defined Contribution (DC) pension plans give guaranteed amounts of pension premium. At pension age an annuity will have to be bought with the pension capital. There are no guaranteed pension terms. There is a substantial investment / interest rate risk.
- As of 2017 it is allowed to within DC partially keep investing pension capital as of pension age. The risk profile has to focus on the period before and after pension age.
Typical Dutch Restrictions
- The maximum amount of pension earning wages amounts to € 103. 317,- in 2017.
- Which wages have to be decreased with a 2017 franchise of i.e. € 11. 829,-.
- Product-related pension advice may only be given by a licensed pension advisor. He must be independent and may only receive payment from his client.
Social Security Employees Coverage
- Employees in Holland participate herein. It provides basic coverage for disability. If coverage is not obliged and you leave the EU, it is under conditions possible to voluntarily participate.
- Coverage is implemented by www.uwv.nl