(Extra) pension accrual

If your employer is not affiliated with an industry pension fund, or if you have a pension shortfall, it is necessary or sensible to build up an supplementary pension yourself. Vive offers employees of affiliated employers the option to build up a pension affordably. But even if you are a self-employed person, the Vive pension plan offers a solution.

If you build up a pension through Vive, it is wise to check whether the amount you may receive from your employer aligns with your wishes. If not, you can choose to supplement your pension income yourself. The Vive pension plan offers this opportunity.

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How much should you build up?

There are several ways to determine a good amount to set aside.  You can build up a maximum amount for your pension annually with tax benefits: your annual allowance and reserve allowance. You can list your expected expenses after retirement and calculate how much money you anticipate being short of per year. The Pension Disc of Five  is a handy tool for this. Then calculate how much you should currently set aside monthly. Watch the explanatory video about the building blocks for an income after retirement. 

Nibud Tip: It is important to check which savings amount fits your budget. Our tool Personal Budget Advice can provide insight into this.  

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Discipline

Building up a pension requires some discipline. You can periodically calculate how much you want to put into your pension pot, but it is easier to set up an automatic debit with your bank account. This ensures you set aside an amount for your pension monthly. Subsequently, you can still check at the end of the year whether you have paid in enough during that year to meet your wishes. As long as you remain within the established annual allowance, you can simply continue to transfer money to your own pension pot. You can calculate how much your annual allowance is here. 

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Tax Benefit

The money you transfer to your pension pot is tax deductible. You get a part of the contribution back from the Tax Authorities when you file your Income Tax return. How much this is exactly depends on your personal situation; the percentage is between 40%-50%.

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Transferring Money

Transferring money to your Vive pension plan is simple. Copy the account number you will be transferring to in the Vive app (under the ‘Deposit’ button) and copy this into your counter-account's bank app. Determine the amount you want to transfer and send the transfer. Vive will allocate the amount to your pension plan on the same day. If you opt for an automatic periodic debit, follow the instructions in your bank app.

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Investing

The money you transfer to your pension plan is automatically invested by Vive every month. You do not have to do anything for this. In the Vive app, you can follow which investment funds Vive invests in for you, now and in the future. Because Vive scales down the risk in your portfolio ten years before the retirement date, the portfolio will automatically change during this period. Vive's investment policy can be found here.

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Questions

If you have questions about the pension plan or how it works, please send an email to support@viveapp.com or use the chat function in the app. Vive is happy to help you.