Target group analysis of variable benefit schemes

Since 2016, it has been possible to continue to invest in the payment phase of (improved) premium schemes. The variable benefit offers a higher (starting) benefit, but with more uncertainty. Does this meet the participant’s need on retirement date and how is the variability of the benefit perceived? What are the issues that are important for a participant in retirement? And on the basis of which assumptions does a prospective pensioner decide for a permanent or variable payment? What products are on the market and how do participants experience these variable benefits?

The provider is required to describe the target group of each product. The law also states that with more complex products, the description must be more quantitative. In this Topicality project together with four insurers who offer these products, and in consultation with the Dutch Authority for the Financial Markets (AFM), we strive for a number of characteristic products to adequately and quantitatively substantiate this target group description.