Welke vaste dalingen en welk beleggingsbeleid passen bij gewenste uitkeringsprofielen in verbeterde premieregelingen?

New regulation on decumulation of DC pensions was introduced in the Netherlands in 2016. This regulation allows investment risks to be taken in the decumulation phase. The initial income of these products can exceed the initial income of the guaranteed life long income products that were mandated up to the change in the legislation. The initial income and the expected income are determined by a so called ‘fixed decrease’, by the investment strategy and (possibly) a smoothing period. In this paper we show how the investment strategy and the ‘fixed decrease’ can be selected (both in case of the individual and the collective risk allocation options offered in the law) to achieve a constant expected pension income while the volatility of the annual adjustments in the income is also constant. Moreover we indicate how the regulation on the ‘fixed decrease’ can be determined to obtain a level playing field between the case of individual and collective risk allocation).

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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