The ultimate pension can surely be better or worse than expected. If there are a number of years with disappointing investment returns and a very low interest rate and, therefore, no or little indexation, the pension can be lower than expected. On the other hand, the pension can also be higher than expected in case of many years of favourable conditions and full indexation.
2,000 economic scenarios
One of the elements of the new European directive IORP II is that participants to pension schemes in Europe should have a good insight into the purchasing power of their pension. Therefore, the Dutch pension sector has developed a Uniform Calculation Method to calculate three scenarios for all types of pension schemes. The calculations are based on no fewer than 2,000 different economic scenarios. The median outcome is use for the expected scenario. The pessimistic scenario is based on the 5% bottom results and the 5% top results are used for the optimistic scenario.
In 2020 in the annual pension statement UPO
The three scenarions can already be seen on the website www.mijnpensioenoverzicht.nl. They will also be presented in the annual pension statement (UPO) that the participants of the sections DuPont Netherlands and Genencor Netherlands receive in 2020. The three amounts are communicated via an illustration, the navigation metaphor (see picture). The amounts in this picture have purely been taken as an example to illustrate the working of the navigation metaphor. The amounts that apply to you are based on your actual pension situation.
The translation of the texts in the illustration is:
Expected final result € 2560 per month
If conditions are unfavourable, you receive less: € 2460 net per month
If conditions are favourable, you receive more: € 2590 net per month
You have now accrued € 1297 net per month