Fish or bird? A choice where there is no correct answer

Pension, lump sum or …?

When we retire, we face the difficult question of whether we should have our savings paid out as a lump sum or receive an annuity until the end of our lives. There is no single answer to this question.

Help me, crystal ball!

The decision of whether to receive a pension or a lump-sum payment would be easy if we were able to see the future. But as we can't, we have to base our decision on whether to have some or all of the capital paid out as a lump sum, or whether one of BVK's pension models ("Dyna", "Kombi" or "Flex") is the right solution, on assumptions and possible scenarios.

Some of the key words that could factor into this decision are fixed costs, taxes, cost of living, matrimonial property and inheritance law, capital investments, liquidity planning, life expectancy risk, income security, potential survivors, home finance, etc.

We have provided a guide for choosing between the different pension models here. You can run simulations of the various pension models in the myBVK insured persons' portal.

Contact a financial planner or your bank/insurer regarding your personal financial planning. Please note that they will charge a fee for their services.

Once you have made your choice, please let BVK know what you decided at least one month before you retire. You can find the "Application for old-age benefits" form here.

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