The Zwitserleven feeling in Pattaya
In response to the recent story about my pension increase(!) Slagerij van Kampen wrote: “Strangely enough, the Zwitserleven commercials never take place in Pattaya. After all, the Swiss livers are prosperous and of a certain class”
Now I have been living in Pattaya for many years and indeed with a wonderful Zwitserleven feeling. If Reaal, which has since taken over Zwitserleven, wants to repeat that advertising message again at a new location, then I am quite prepared – for a reasonable fee of course – to act as the main character in a new commercial.
I have told you that every month I receive 7 pension payments from various funds and institutions. One of these is an annuity from Reaal and I will explain how I got it. In the early XNUMXs, the management of the company I was working for at the time was given the opportunity to inquire about how their pension had accrued up to that point and how much pension I could expect once the time had come.
That was quite a shock, because due to a number of changes of employer, a considerable “pension gap” had already arisen. I had never really thought about that, because who cares about their pension at a young age 40 years later? I also had to put in a lot of effort to collect all the pension data from the past, but luckily I got help from the pension funds themselves.
I was then told how that pension gap arises. If you work for the same employer for 40 years, you slowly but surely build up a pension entitlement, which then yields a certain amount at the end. This is usually about 70 to 80% of the most recently earned salary, but the abolition of certain social premiums makes the net amount more favourable, sometimes as high as 90%. However, the build-up in those 40 years does not go in a straight line, the line continues to rise slightly for a long time, only to go up very quickly towards the end. I have heard that after paying premiums for 35 years, you have only reached 50% of your pension. The “explosion” to the top has taken place in the last five years.
When there is a change of employer, that line is not simply continued, but there is a setback. You then start a new line upwards from a lower point on the graph. That is where the pension gap arises. Now I am not a pension expert, so if any of the above is incorrect, I will read it in a response. I understand that nowadays people often transfer the accrued pension rights to a new employer.
Anyway, after that research by a pension consultancy firm, I covered that pension gap with an annuity insurance policy. Quite expensive at the time, but the premium was tax-deductible, which eased the pain somewhat. Now I'm reaping the benefits, because with that annuity I do indeed receive almost 90% net of my last salary.
I can advise everyone, especially when changing jobs, to have their pension examined in order not to be faced with a nasty surprise later on. Because then it is possible to enjoy a well-deserved retirement with a Zwitserleven feeling in Pattaya (or elsewhere).
Good story!
90% of your last salary is a dream for many! Glad it came out for you!
“Prosperous and of a certain class”. That's a compliment. But Zwitserleven also pays out small pensions, but it's not all 'luxurious' and 'great' there. Your pension depends on what you have invested and a short career requires a small pension.
Wise Gringo decides to cover your retirement gap.
It is a pity that it is still not possible to transfer all those pension components to 1 pension fund, as that would considerably reduce the administrative costs.
In the more distant past, pension accrual took place on the basis of a final pay system, which is where the explosion came from. This was later changed to an average salary system.
As a former self-employed person, I did not build up a pension, but I also took timely measures through life and annuity insurance, the exemption for pure life insurance and the fiscal annuity deduction was a good help.
I can advise everyone to take timely measures, which keeps the monthly costs relatively limited and people do not become dependent on the government, which puts Aow and pension under pressure.
Whether that should be done in the form of insurance is very much the question, my advice would be to keep it under your own management in the current financial situation. In the past, the government has amended quite a few laws, e.g. has proven to be an unreliable partner.
Also, make sure that your housing costs are nil, so that the mortgage is paid off on your retirement date, then you will lose a large cost item so that the Zwitserleven feeling can be honored.
If possible, you can also try to determine your retirement date yourself by means of measures to benefit from the Zwitserleven feeling a few years earlier instead of. to be bound by the ever-increasing Aow age.
Success.
NicoB.
I am very happy to be quoted here! And now without a scathing commentary. Van Kampen's readers can be roughly divided into two groups. One is for or one is against! But more importantly: people apparently read it! Good: to the point. I fear that I will never be able to experience that Zwitser life. Not only as a vital old man in a sailing yacht off Greece, but also the cheaper surrogate in Pattaya does not seem to be for me. Simply because it is hardly cheaper there in Thailand than in the blue waters around Greece. Nothing but praise. I admire your approach. For Van Kampen it will be up to sixty-seven or settle for a meager pension. If only my Thai wife had built up something….. but she will only receive state pension in 20 years. Then maybe I already…. And until then for me a meager married state pension without supplement.