What is outgoing value transfer?
Do you have a new employer and are you accruing pension there? Then you can take the pension you accrued with LifeSight with you. We call this outgoing value transfer. If you choose this option, your pension capital with LifeSight will be added to the pension that you accrue with your new employer.
You can choose yourself whether you want to transfer the LifeSight pension. Only in the case of a small pension it is legally stipulated that LifeSight may decide to transfer your accrued pension. A small pension is a pension that is lower than € 594.89 (2023). If your accrued pension with LifeSight is lower than this amount, LifeSight will automatically transfer your pension.
If you have accrued pension with other previous employers, you can still choose to transfer this to the new organization that arranges your pension with your new employer. You can also choose to transfer some pensions and others not.
Who is outgoing value transfer intended for?
Outgoing value transfer is intended for employees who accrue pension with a new employer. Outgoing value transfer can be useful if your new employer’s pension plan is a better fit for you than LifeSight’s pension plan. In order to assess whether this is the case, you should investigate the following:
A. What do you get in the pension scheme of your new employer?
- Is the amount of your next pension certain?
- Will your pension be paid out by an insurer with certainty?; or
- Does your pension depend on the financial situation of a pension fund?; or
- Does your pension depend on the value of your investments?
- Does your next pension retain its value?
- Does your pension grow with the development of prices or wages?; or
- Will your pension be increased based on the value of your investments?
- Can the pension be reduced? For example, in the event of a poor financial situation of a pension fund.
- What costs are charged to your pension?
- Think in particular of costs for administration and costs for investing.
- Will your partner receive a benefit if you pass away?
- Yes, both in the event of decease before and after your retirement date
- Yes, but only in the event of decease after your retirement date
- Yes, but only in the event of decease before your retirement date
- No, my partner will not receive a benefit in that case
- Will your children receive a benefit if you pass away?
- What choices do you have for your next pension?
- Can you get your pension paid out earlier?
- Can you get your pension paid out later?
- Do you receive a partner’s pension and can you convert this into retirement pension?
- Do you have choices about how your pension is invested?
B. What do you get in the LifeSight pension scheme?
- At LifeSight, the amount of your pension is not certain. Your pension depends on the value of your investments.
- With LifeSight, your pension will be increased until the retirement date based on the value of your investments. On your retirement date you can choose to purchase a certain (fixed) pension from an insurer or a pension that keeps depending on your investments (variable pension).
- With LifeSight, your pension may be lower if the results of your investments are disappointing.
- LifeSight has costs for carrying out the investments. We deduct the costs for the investments from the value of your investments. More information about the costs of your investments can be found on the participant portal MijnLifeSight.nl. For more information, see the brochure on investments in the My documents section.
- With LifeSight, your partner will receive a benefit if you pass away, both before and after your retirement date. Unless you choose to only purchase retirement pension on your retirement date.
- With LifeSight, your children will receive a benefit if you pass away. We do set conditions for this. Your child must be under the age of 18 or 21. This depends on the arrangement that your employer has agreed upon. If your child is studying or is disabled, the benefit will be paid up to the age of 27.
- In the LifeSight scheme you can choose to have your pension pay out to start earlier or later, to convert your partner’s pension into more retirement pension and you have choices about how we invest for you. You will find more information about this on the other pages of this website under the topic Selection guidance.
After examining the above points, you can make a trade-off. And you can assess whether value transfer – to your new pension provider – suits you or not.
You can also use the Pension Comparer to compare your previous and current scheme.
Why outgoing value transfer?
- Your pension may be more secure with your new employer.
The amount of the pension that you will receive with LifeSight from the retirement date is not yet certain. The pension is only purchased on the retirement date. The amount of your pension depends on the value of your investments, the interest rate and the rate that the insurer uses.
- You have your pension in one place, which gives you a better overview. And you will only receive messages from one organization.
- With LifeSight, your pension can decrease or increase by investing. You may get a higher return with LifeSight than in the pension scheme of your new employer. This will result in a higher pension.
- You may have fewer choices in your pension scheme with your new employer. For example, how you can invest. But also pay attention to the options you have for the commencement date of your pension and for converting partner’s pension into extra retirement pension.
When is outgoing value transfer suitable?
There are pros and cons to outgoing value transfers. Whether it suits you depends on what you find important. First do the research as explained above in the section “Who is outgoing value transfer intended for?”.
Below you can see in which situations incoming value transfer is or is not suitable for you.
- If you are prepared to properly compare the old and new scheme (possibly with the help of an adviser) to see what is most favorable for you.
- If you like certainty and have a (more) secure pension with your new employer.
- If the costs at LifeSight are higher than at the organization that arranges your new employer’s pension.
- If you have often changed jobs and therefore have many different pensions.
- If you are not prepared to properly compare the old and new scheme (possibly with the help of an adviser) to see what is most favorable for you.
- If you are willing to take the risks you take with your investments with LifeSight because you consider the advantages of investing more important than the disadvantages.
- If you think it is important that you can make choices, for example in your investments or the commencement date of your pension. And you cannot do this in your new scheme.
- If the costs at LifeSight are lower than at the organization that arranges your new employer’s pension.
- If you were ill on the date you left your previous employer and have not fully recovered for at least four weeks. Then it is better to wait with a value transfer. If you become incapacitated for work due to this illness, you may be entitled to accrue pension with LifeSight. You lose this right if you choose for value transfer.
Which alternatives are there?
An alternative is that you leave the pension accrued with your previous employer with LifeSight.
How do you arrange outgoing value transfer?
You can request value transfer via the organization that arranges your new employer’s pension. This organization will request the value of the pension accrued with LifeSight from us.
This organization will provide an offer based on the information provided by LifeSight. Here you can see what processing the value transfer means for you. If you agree, the new organization will continue to arrange your pension for you.
You can also request a value transfer for several previous pensions.
If you have accrued pension with other previous employers, you can still request a value transfer for this.
If you do not request a value transfer, we will not initiate an outgoing value transfer ourselves. Your pension will then remain with LifeSight. An exception to this is if it concerns a small pension, which is a pension lower than € 594.89 (2023). In that case, we will automatically transfer your accrued pension with LifeSight to the organization that arranges the pension of your new employer.
We are pleased to assist you with your retirement choices. Those choices can have major financial implications. Our guidance is only about your pension plan with LifeSight. Whether a choice is right for you naturally depends on your entire personal situation. Now and in the future. Have you thought about asking an advisor? They can give you an overview of all your financial affairs. And help you make the most appropriate choices.