Module 6: The Price of a Pension

To be able to pay you a lifelong old-age or partner's pension later on, a large pot of money has to be built up during your working life. In this module you will learn, in plain language, how a pension provider determines exactly how much money is needed and why the premium fluctuates so often. The price of a pension depends, roughly speaking, on three major factors: interest (the return), life expectancy and costs. We cover the calculations involving interest and present value, the overlevingstafels (mortality tables), actuarial mathematics, the costs of the pension fund, the financing systems, and additional safeguards such as premievrijstelling (premium waiver).