What you need to arrange for Pre-pension
If you want to retire earlier, you must apply to AZL three months before your desired retirement date. You should also discuss this with your employer. Our website also contains extensive information.
It is new that you can now choose for a new LifeCycle Mix that is focused on pre-pension. There are even three different LifeCycle Mixes. Who does it apply to and what should you do? We explain this in this article.
First of all, choosing a LifeCycle Mix is only applicable if you accrue pension capital through the Extra Pension or Net Pension schemes or if you participated in the TOP scheme at the time. This extra pension accrual is one of the choices that TNO Pension Fund offers. You have a capital account with NN Investment Partners (NN IP), in which you invest your capital via an investment mix or LifeCycle Mix. This LifeCycle Mix has been specially compiled for members of the TNO Pension Fund.
What about 'extra pension accrual' and are there alternatives?
See the explanation in our film 'How to accrue pension'.
Capital account with a LifeCycle Mix
Since recently there are three different LifeCycle Mixes, in which you invest your pension capital for a specific pension purpose. For example, do you want to retire sooner or much later, or do you want a variable pension payment with the option of investing part of your benefits? For each of these purposes, there is a LifeCycle Mix that best fits that purpose.
NB You are not obliged to use your TOP capital (focused on pre-pension) for your pre-pension.
Which investment method or LifeCycle Mix will you choose for your pension capital at NN IP?
LifeCycle Mixes
- LifeCycle Stabile This is the standard option. This LifeCycle Mix is focused on converting your capital to supplement your old-age pension..
- LifeCycle Pre-pension Do you want to retire earlier or take pre-pension? Then this new LifeCycle Mix is the best fit for this.
- LifeCycle Variable This LifeCycle Mix is focused on a variable pension payment with the possibility of investing part of your capital. It is then advisable to choose a LifeCycle Mix approximately 15 years before the desired retirement date. Research has shown that this is when you can achieve an optimal return. You will need to shop for this variable pension payment.
How does it work?
When you are logged in to NN IP, select the menu item ‘Investments’ and then ‘Change investment method’. You now have to go through a number of steps. First, select the account for which you want to change the investment method (if you have more than one account). Watch the Duty of Care videos or learn more about the product. The following step gives you the option: the LifeCycle Mixes. Choose what best fits your pension needs. After this, you should determine your risk profile by answering sixteen questions*. The outcome of this indicates whether you have a defensive, neutral, or offensive risk profile. Then you get the summary to check if everything is correct before confirming your choice.
*lf your retirement date is in fifteen years, two additional questions will follow about reinvestment. These questions do not apply to the LifeCycle Pre-pension and can be skipped by choosing 'Next' at the bottom of the page.
If you do not make a choice, your capital will be invested in LifeCycle Stable.
If you have any questions, please do not hesitate to contact NN IP.