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Summary
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The answers from the questionnaire emphasise that newly
retired people desire a smooth transition in terms of
consumption from their working life.
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Influence from financial advisors.
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Information, framing of withdrawal options and default
options have a major effect on the choice of withdrawal
period.
According to the representatives from the pension insurance
companies and the labour market partners, it is most likely that the
development towards an increased share withdrawing their
occupational pensions over a fixed number of years will continue. In
the new occupational pension plans agreed upon in the past few
years, the whole occupational pension can be withdrawn over a fixed
number of years. Earlier research shows that as the possibility to
withdraw pensions over a few years opens up, more individuals
choose this alternative.
On the other hand, individuals with a large pension capital will tend
to annuitise their pension. In the future, the average occupational
pension capital will be larger than it is at present, which could
dampen the increasing trend for withdrawing occupational pensions
over a fixed number of years.
Conclusions
According to ISF, the possibility of withdrawing occupational
pensions over a fixed number of years is not a problem in general.
However, it could be problematic for some groups to choose to
withdraw their occupational pension over a few years. Overall, the
risk that a large group of pensioners will see a significant reduction in
their occupational pension income after some years as pensioners is
currently estimated as being small. Today, there are restrictions in
some of the occupational pension plans, so that one part of the
pension must be annuitised. In the pension plans where the whole
occupational pension can be withdrawn over a fixed number of years,
only a minority actually do so.
For some individuals it can be favourable to withdraw the
occupational pension over a few years instead of as an annuity. This