Privépensioenverzekering

Privépensioenverzekering, also known as private pension insurance, is a voluntary savings product designed to supplement statutory pensions and employer-sponsored retirement plans. It allows individuals to build up additional capital for their retirement years. This type of insurance is typically offered by insurance companies and can be structured in various ways, including endowment insurance or annuity policies.

The primary purpose of a privépensioenverzekering is to provide financial security after an individual stops working. Contributions are made regularly over a period of time, and the accumulated sum, along with any accrued interest or investment returns, forms the retirement fund. Upon reaching a predetermined retirement age, the policyholder can receive the accumulated capital in a lump sum, as a regular income stream (annuity), or a combination of both.

There are often tax advantages associated with privépensioenverzekering. Contributions may be tax-deductible up to certain limits, and the capital accumulated within the policy generally grows tax-deferred. Upon retirement, withdrawals from the policy may be taxed at a lower rate than ordinary income. The specific terms, conditions, and tax implications can vary significantly depending on the country and the specific insurance product chosen. It is advisable to consult with a financial advisor to understand the suitability and benefits of a privépensioenverzekering for individual circumstances.