Making sure that your pension keeps its value
We seek to raise your pension annually
Philips Pensioenfonds wants to offer you a pension that retains its purchasing power in the long term, to make sure that it still buys you as much in the future as it does now. That is our ambition. To realise that ambition, we need to adjust your pension to reflect increases in prices (for retired members and non-contributory policyholders) and wage increases (for active members). This is called ‘indexation’.
Overview indexations
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Your pension will increase as of 1 April 2026
The Board has determined the pension increase as of 1 April 2026 after weighing between providing as much indexation as possible and protecting the financial buffer. It follows from the Board's consideration that the pensions of retired members and non-contributory policyholders will increase by 2.1% as of 1 April 2026. This compensates for the entire price inflation over the past year. The accrued pensions of active members will increase by 3.0%, which is in line with wage inflation. This full indexation is possible by using the more lenient indexation rules of the transition FTK. Read more about this in the bridging plan.
Bridging plan
In the bridging plan you can read why applying the more lenient indexation rules is a sensible decision given the pension fund’s finances, and how it will affect our members in the different age categories.
View the Bridging plan 2026
View the Bridging plan 2025
View the Bridging plan 2024
View FAQ Bridging plan
- Retired members and non-contributory policyholders
The increase in the pensions in payment and non-contributory pensions as of 1 April 2026 was 2.1%.
- Active members
The increase in the accrued pensions as of 1 April 2026 was 3.0%.
Suggestion: go to MijnPPF for our letter with more information about the indexation decision 2026.
The Board determines annually how much indexation is sensible
Your pension will look different when a new pension scheme will apply from 1 January 2027 to all participants of Philips Pensioenfonds that is in line with the new pension system. The Board wants every participant in this new pension system to be able to make a good start and that the differences between participant groups are limited, explainable and fair until the moment of transition to the new system. These principles are also important for the decision that the Board takes each year on the increase of the pensions. Read more about this in our magazine Generaties or in this news item.
Indexation allocation
How much pension increase the Board can provide in any given year depends on several factors. Read more about this and see an overview of news items about the decisions in recent years.
How the board makes the indexation decisionIndexation policy: a quick introduction
This information explains under what circumstances your pension can be raised.
Indexation ambition
We try to increase your pension each year by wage inflation (for pension accruers) or by price inflation (for pension recipients and members with a paid-up policy). This is our ambition, as described in our indexation policy. However, this indexation is not an automatic given. Every year, the Board of Trustees decides whether your pension can be increased, and if so by how much. Whether or not we can realise our ambition depends on what the law permits, based on our financial health. Another factor is that we want to be in a solid financial position on 1 January 2027 when we switch to the new pension system.
More about indexation ambitionIndexation allocation
The Board aims to increase your pension by wage inflation (if you are accruing pension) or by price inflation (if you are pension recipients or holder of a paid-up policy). Until the transition to the new pension system, the Board annually assesses which pension increase (indexation) is sensible.
More about indexation allocationIndexation for active members
For Philips, Signify and Versuni employees currently accruing pension rights, the pension fund seeks to raise the accrued rights annually. These annual increases are important to ensure that your pension retains its value when you start drawing it.
More about indexation for active membersIndexation for inactive members
If your employment ends or if you retire, Philips Pensioenfonds seeks to increase your pension annually to reflect price inflation, based on increases in the derived consumer price index published by Statistics Netherlands (CBS).
More about indexation for inactive membersQuestions Bridging plan
In the bridging plan you can read why applying the more lenient indexation rules is a sensible decision given the pension fund’s finances, and how it will affect our members in the different age categories.
General questions
With the transitional financial assessment framework, more lenient indexation rules became available for pension funds to use on 1 July 2023, which is when the Dutch Future of Pensions Act (Wet toekomst pensioenen) came into force. To apply those rules, pension funds need to substantiate why it is in the best interests of their members to apply the transitional financial assessment framework, and what the effects are. This includes calculating how the members are affected by the more lenient indexation rules, and what the consequences are for the pension fund’s financial position. It also requires substantiating how these effects are ‘balanced’. This is then recorded in a ‘bridging plan’, which is reviewed by the Dutch central bank (DNB).
Philips Pensioenfonds’s bridging plan came into place on 1 January 2024. Philips Pensioenfonds submitted its bridging plan to the Dutch central bank (DNB) in January 2024. The plan was approved in February, and now the more lenient indexation rules may be used for the decision about indexation at 1 April 2024 and the decision at 1 April 2025.
Philips Pensioenfonds submitted a bridging plan to De Nederlandsche Bank (DNB) for the first time at the beginning of 2024. This bridging plan was approved in February 2024. With the approval of the bridging plan, Philips Pensioenfonds had the opportunity to apply the more lenient indexation rules in 2024 and 2025. These more lenient indexation rules were used for the increase in pensions on 1 April 2024 and 1 April 2025. A pension fund must update the bridging plan annually in order to continue to use the more lenient indexation rules. Philips Pensioenfonds submitted the updated bridging plan 2025 (hereinafter referred to as the bridging plan 2025) to DNB for approval in June 2025. DNB had approved the updated bridging plan, so we can also apply the broader indexation rules to the indexation decision as of 1 April 2026. It is a legal requirement to update the bridging plan again in 2026, even though the indexation as of 1 April 2026 will be the last one under the current pension scheme. The updated 2026 bridging plan was submitted to DNB for approval in March 2026.
The bridging plan will remain in place until we switch to the new pension plan in 2027. However, Philips Pensioenfonds has to update the plan each year. It might also need to adjust its policy if circumstances require.
The rules for indexing pensions are more lenient as long as the Pension Fund submits an updated bridging plan annually (and this is approved by DNB). Under those more lenient rules, pension funds are permitted to index their pensions if their funding ratio is 105% or higher. This means that the financial reserve may not drop below 5% as a result of the indexation. Any assets above that minimum may be used to index the pensions, as long as the pension fund can demonstrate that it will still have enough resources to make a balanced switch to the new pension plan. An important factor here is that the Board of Trustees of Philips Pensioenfonds determines every year what a sensible rate of indexation is, even without these legal requirements. Every year, the Board weighs maximum indexation against the need to protect the buffer, making allowance for a minimum target funding ratio for entitlement conversion of 114%.
Whenever we make a decision, we always consider how it will affect each of our members, individually and as separate groups. Indexing the pensions before the switch means a higher pension right now for our pension beneficiaries. Members who are not drawing their pension yet will also see an increase. However, the more lenient indexation rules in particular benefit members aged 64 and up.
Increasing the pensions costs money, which Philips Pensioenfonds takes from the financial buffer. The Board wants all our members to get off to a strong start when we switch to the new pension plan in 2027. With this in mind, we also consider what impact our decision will have over the entire period until then. Indexing the pensions now means that we will have less money to share among our members when we switch to the new system. On balance, this is slightly less favourable for active members, and in particular the younger active members, who have accrued less pension than older members. Their indexation is awarded on a smaller amount. It would be fractionally better for them if we awarded slightly less indexation now, which would leave more money for their personal pension savings when we make the switch. Another consideration is that applying the transitional financial assessment framework increases the possibility that we might have to lower our pensions. If we award more indexation than would be possible under the normal indexation rules, the Pension Fund’s buffer is reduced by more than it would under those normal rules. Lowering the pensions would have immediate financial consequences for our pension beneficiaries. However, the finances of Philips Pensioenfonds are strong enough that it is very unlikely that we will need to lower the pensions, even using the transitional financial assessment framework.
Questions bridging plan 2026
The bridging plan explains why Philips Pensioenfonds wants to have the option of applying the more lenient indexation rules, why this is a sensible decision given the pension fund’s finances, and how it will affect our members in the different age categories.
Philips Pensioenfonds’s bridging plan shows that the finances will still be sufficiently healthy when we switch to the new pension plan, even with the more lenient indexation rules.
You can download an abbreviated version of the bridging plan 2026 here. The bridging plan 2026 explains why Philips Pensioenfonds wants to have the option of applying the more lenient indexation rules, why this is a sensible decision given the pension fund’s finances, and how it will affect our members in the different age categories.
By using the temporary government rules (the transition FTK), Philips Pensioenfonds is allowed to grant more lenient indexation up until the start of the new pension scheme. This is particularly beneficial for older active members and for pension recipients. At the same time, granting more indexation now means that the Fund retains fewer financial resources to increase pensions later on. In addition, while the rules for increasing pensions have become more flexible, the rules for reducing pensions have become somewhat stricter if the financial situation deteriorates. Because younger participants are mainly affected by long‑term outcomes, granting more indexation now is—viewed over the long term—less favourable for them.
Nevertheless, the financial position of Philips Pensioenfonds is currently strong. The likelihood that the Fund will have to reduce pensions is therefore small, even when applying the more flexible indexation rules.
How the combined effects of higher indexation and stricter reduction rules ultimately play out is uncertain. Philips Pensioenfonds has analysed the potential generational effects in accordance with the legally prescribed methodology. This analysis shows that the differences between applying the current indexation rules and the more flexible rules—expressed in net benefit—are limited for all participants (ranging from +1.2% to –0.3%). This is because the more flexible indexation rules only have an effect in 2026 (until the transition to the new pension scheme), which is a short period. Moreover, the effects remain limited because the Board annually assesses what level of indexation is responsible, taking into account the objective of protecting the financial buffer (in addition to the aim of granting the highest possible indexation).
The Board has therefore concluded that using the more flexible indexation rules is balanced, also because the annual indexation decision explicitly takes differences between participant groups into account. The Accountability Body has likewise issued a positive opinion on this conclusion in the bridging plan.
To determine what effect using the more lenient indexation rules would have, we calculated the pension values for separate groups of members using the existing legal indexation rules and using the more lenient indexation rules under the transitional financial assessment framework for the period up to and including 2026 (on 1 January 2027 we expect to switch to the new pension plan). This approach reveals how using the transitional financial assessment framework will affect our members’ pensions.
Explanation: net advantage, valuation of a pension plan
A pension’s value is expressed using the concept of ‘net advantage’ (netto profijt): a legally prescribed method for determining the value of a pension plan. This can show the difference between the pension values of separate groups of members with and without the more lenient indexation rules, expressed as ‘net advantage’. All the gains and losses that are identified for the various groups of members are expressed in terms of the net advantage. This is, therefore, not about raising or lowering the pensions.
The more lenient indexations are favourable for active members over the age of 64: they gain up to 0.3% by benefiting from the extra indexation in the short term. The younger group of active members suffer a minor loss of up to 0.3%, as they would benefit more from having a greater financial buffer and more indexation in the future, when they have accrued more pension.
To see a graph with the effects for every age category, see the bridging plan that is published on our website.
The more lenient indexations have a favourable effect for all the pension beneficiaries, who see an immediate financial effect of the extra indexation. Maximum indexation in the short term means a gain for them of up to 1.2%.
To see a graph with the effects for every age category, see the bridging plan that is published on our website.
For non-contributory policyholders, it likewise applies that participants older than 64 will see a maximum increase of 0.3%. For younger policyholders, there is a small disadvantage of up to 0.3%, just as for active contributors.
To see a graph with the effects for every age category, see the bridging plan that is published on our website.
Questions bridging plan 2025
The bridging plan 2025 explains why Philips Pensioenfonds wishes to have the option of using the more lenient indexation rules, why this is a sensible decision given its finances. Philips Pensioenfonds’s bridging plan 2025 shows that the finances will still be sufficiently healthy when we switch to the new pension plan, even with the more lenient indexation rules.
You can download an abbreviated version of the bridging plan 2025 here. The bridging plan 2025 explains why Philips Pensioenfonds wants to have the option of applying the more lenient indexation rules and why this is a sensible decision given the pension fund’s finances.
Questions bridging plan 2024
The bridging plan explains why Philips Pensioenfonds wishes to have the option of using the more lenient indexation rules, why this is a sensible decision given its finances, and what the effect will be for members in different age categories and different groups (active members, pension beneficiaries and non-contributory policyholders).
Philips Pensioenfonds’s bridging plan shows that the finances will still be sufficiently healthy when we switch to the new pension plan, even with the more lenient indexation rules. The bridging plan also provides confirmation that using the more lenient indexation rules will not create any major differences between separate groups of members, nor between younger and older members. In this respect, the bridging plan builds on the analyses that we carried out in 2021 and that led to the decision to apply the transitional financial assessment framework as soon as the law permitted.
You can download an abbreviated version of the bridging plan 2024 here. The bridging plan 2024 explains why Philips Pensioenfonds wants to have the option of applying the more lenient indexation rules, why this is a sensible decision given the pension fund’s finances, and how it will affect our members in the different age categories.
Under the government’s temporary new rules (the transitional financial assessment framework), Philips Pensioenfonds is allowed to be more lenient with its indexation until the new pension plan is adopted. This benefits older active members and pension beneficiaries in particular. At the same time, giving more indexation now means that the pension fund has fewer financial resources to raise the pensions further down the road. In addition, the more lenient rules for indexation are balanced by slightly stricter rules for cutting the pensions in financially leaner times. Younger members are concerned mostly with the long term, and so a higher rate of indexation now is less favourable for them in the long term. However, it is worth noting that Philips Pensioenfonds’s financial position is strong at present, and the likelihood that we will need to cut our pensions is small, even under the more lenient indexation rules.
It is uncertain what the effects will be, on balance, of a higher indexation rate and a stricter policy for cutting the pensions. Philips Pensioenfonds has mapped out the potential generational effects using the method prescribed by law, which shows that the differences between using the existing indexation rules and using the more lenient indexation rules, expressed a the net advantage (netto profijt), are minor for all our members (ranging from a positive value of 1.1% to a negative value of 0.4%). The effects of the more lenient indexation rules are limited to the three years ahead (until we switch to the new pension plan), which is a short period of time. They are also limited by the Board’s annual decision to consider what a maximum sensible rate of indexation is, bearing in mind the goal of protecting the financial buffer (alongside the goal of awarding as much indexation as possible). As such, it is the Board’s conclusion that using the more lenient indexation rules is balanced, in part because the annual indexation decision includes weighing the differences between different groups of members. It is also worth mentioning here that the Accountability Body and the Dutch central bank (DNB) have expressed positive opinions on this conclusion in the bridging plan.
To determine what effect using the more lenient indexation rules would have, we calculated the pension values for separate groups of members using the existing legal indexation rules and using the more lenient indexation rules under the transitional financial assessment framework for the period up to and including 2026 (on 1 January 2027 we expect to switch to the new pension plan). This approach reveals how using the transitional financial assessment framework will affect our members’ pensions.
Explanation: net advantage, valuation of a pension plan
A pension’s value is expressed using the concept of ‘net advantage’ (netto profijt): a legally prescribed method for determining the value of a pension plan. The figures below show the difference between the pension values of separate groups of members with and without the more lenient indexation rules, expressed as ‘net advantage’. All the gains and losses that are identified for the various groups of members are expressed in terms of the net advantage. This is, therefore, not about raising or lowering the pensions.
The more lenient indexation rules are favourable for active members over the age of 55: they gain up to 1.1% by benefiting from the extra indexation in the short term. The younger group of active members suffer a minor loss of up to 0.4%, as they would benefit more from having a greater financial buffer and more indexation in the future, with more pension accrued.
To see a graph with the effects for every age category, see the bridging plan that is published on our website.
The more lenient indexation rules are favourable for all retired members, who see an immediate financial effect of the extra indexation. Maximum indexation in the short term means a gain for them of up to 1.1%.
To see a graph with the effects for every age category, see the bridging plan that is published on our website.
For non-contributory policyholders, the age when the more lenient indexation rules becomes favourable is slightly lower than for active members. If they are above the age of 45, they gain up to 1.1%. Younger policyholders will have barely any loss or gain.
To see a graph with the effects for every age category, see the bridging plan that is published on our website.
Questions Indexation decision
Do you want to know more?
According to the existing legal rules for indexation, a maximum partial increase of 52% of the ambition was possible in 2026. This amounts to an increase of approximately 1.1% for retired members and non-contributory policyholders and approximately 1.6% for active members. However, Philips Pensioenfonds has used the more lenient indexation rules that are available through the application of the transition FTK. This allows earlier and more indexation to be provided than under the existing statutory indexation rules. On this basis, the Board has been able to decide to fully increase all pensions.
Compensatory indexation is governed by the existing indexation rules. It is possible only if the policy funding ratio passes a threshold defined by law. For Philips Pensioenfonds, that threshold was 138.7% at the end of December 2025. Since the policy funding ratio was far lower, at 125.2%, we are not legally allowed to grant compensatory indexation at this time.
No full indexation has been granted over the total period since 2011. The ambition of the Board of Trustees is to grant full indexation at the same rate as price inflation (for retired members) and at the same rate as wage inflation (for active members). A review of recent years shows that up to and including 2026 the total indexation that has been forgone compared with that ambition is:
- 16.1% for retired members and non-contributory policyholders
- 18.7% for current employees of Philips and Signify accruing pension rights under the flex pension (collective labour agreement and senior directors) plan
- 20.7% for current employees of Philips and Signify accruing pension rights under the flex pension (executives) plan.
How was the price inflation of 2.1% determined?
The price inflation is based on the development of the derived consumer price index over the period from January 2025 through January 2026. Based on this, the price inflation we use as the ambition within our indexation policy comes out at 2.1%. This percentage may differ from figures used by other pension funds if they apply a different measurement period (for example, September‑to‑September) or if their figures are based on the regular, non‑derived consumer price index.
Every year, as prices increase, Philips Pensioenfonds seeks to raise its pensions accordingly. These increases are based on the ‘derived’ consumer price index published by Statistics Netherlands (CBS). This figure does not include price developments resulting from changes in product-related tax rates (e.g. VAT and excise duty on alcohol and tobacco) and subsidies and from consumption-related taxes (e.g. motor vehicle tax). Most pension funds – like Philips Pensioenfonds – use the derived price index.
When we talk about 'differences between participant groups', we mean 'differences in the extent to which we can realize the ambition for these groups'. An ambition has been formulated for the pensions of our participants; this is a pension based on full pension accrual and full indexation. This ambition applies to all participants. That is why we think it is important that if there are differences in the extent to which we can achieve that ambition, these differences are fair and explainable.
Every pension increase must be paid from the financial buffer. And that buffer is there for all participants together. The Board's annual assessment of pension increases therefore examines whether the decision is 'balanced'. If the differences between participant groups are fair and explainable even after the indexation decision, the 'balance test' will usually be met.
The ambition of Philips Pensioenfonds in the current pension scheme is to raise current and non-contributory pensions annually by the same rate as price inflation, expressed in the movements in the derived consumer price index established by Statistics Netherlands (CBS).
The ambition of Philips Pensioenfonds is to raise the accrued pension rights of employees still working for Philips, Signify and Versuni annually by the same rate as wage inflation, expressed in the movements in the collective salary scale adjustments at Philips (also for those who work for Signify).
Whenever the Board of Trustees passes a decision to raise the accrued pension rights, this takes effect on the same date every year: 1 April.
As established in our indexation ambition, we want to increase the pensions of pension beneficiaries and non-contributory policyholders by the same percentage as price inflation, expressed in the derived consumer price index. For active members, the ambition is to raise the accrued pensions every year by the same rate as wage inflation, expressed as the movement in the collective salary scale adjustments at Philips. This extends to Signify and Versuni employees as well. This gives shape to the arrangements made during the collective negotiations between employers and trade unions, which also include the indexation ambition.
The Philips Pensioenfonds flex pension plan is a collective defined contribution plan with an underlying career-average earnings ambition. That career-average earnings ambition means that the pension that you receive depends not only on your average earnings during your working life, but also the degree to which your accrued pension rights are adjusted during the accrual phase, which is how your pension will retain its value over time.
If you are already drawing your share in your former partner’s retirement pension, or if your former partner no longer works for Philips, Signify or Versuni , the information in the letter applies both to the pension that you are receiving and to your extraordinary survivor’s pension. If your policy includes an extraordinary survivor’s pension, but you have not started drawing your share in the retirement pension because your former partner is still working for Philips, Signify of Versuni, the information in the letter applies only to your extraordinary survivor’s pension. The accrued retirement pension (and your share in it) will be indexed in accordance with the indexation policy for active members. This means that it will be increased by 3.0% on 1 April 2026. The table below shows how your pension will be indexed.
| Share in retirement pension | Extraordinary survivor’s pension | |
| Your ex-partner works for Philips, Signify or Versuni | 3.0% | 2.1% |
| Your ex-partner no longer works for Philips, Signify or Versuni , or has already retired | 2.1% | 2.1% |
| Your ex-partner is no longer alive | NA | 2.1% |
We will pay you your April 2026 pension on the first working day in April. This means that your pension, including the 2.1% increase, will be transferred on Wednesday, 1 April 2026. You will receive your detailed pension statement shortly before that (either by post or in digital format via www.philipspensioenfonds.nl/mijnppf), showing the new gross value of your pension and the net amount that you will receive.
All beneficiaries of a retirement pension, a survivor’s pension, an orphan’s pension or a disability pension will receive their annual pension overview in late-April 2026. That annual pension overview shows the 2.1% increase.
Every year until you retire, you receive a Uniform Pension Overview based on your pension situation at 1 January. Since your pension will be increased on 1 April 2026, that increase will only be reflected in your Uniform Pension Overview for 2026, which you will receive in the first half of 2026. Your new pension situation will appear in the more up-to-date Pension Planner in MijnPPF on mid April 2026.
Your accrued pension will be increased by 3.0% on 1 April 2026. This increase will appear in the Pension Planner from Mid-April 2026 forward. Also updated every year on 1 April is your pension base: the portion of your salary on which you accrue your pension. The new information will appear in the Pension Planner in early May, which means that any pay rises that you received between 1 April 2025 and 2 April 2026 will be reflected in your pension base. This in turn affects how much your pension is expected to be according to the Pension Planner.
If Philips Pensioenfonds raises its pensions, this is done in the current pension scheme on 1 April of each year. The reason why Philips Pensioenfonds uses this date of 1 April is that this corresponds to the employment regulations that are in place at Philips. For example, pay rises take effect on 1 April. The regular indexation is timed for 1 April to match this.
The increase for pension beneficiaries and non-contributory policyholders is based on the derived price index rate from January to January, which is finalised in early March. The increase for active members is based on the collective salary scale adjustments at Philips during the period from 2 April of the previous year to 1 April of the current year. Every year in March, we announce by what rate the pensions will go up on 1 April, and you receive a personalised letter from us explaining our indexation decision.
In view of the transition to the new system, the Board of Trustees wants to extra protect the financial buffer. Under the new pension system, pensions will follow the ups and downs of the economy more closely than they do now. A financial buffer will help our members to start with a higher pension, or it can be used to set up a ‘reserve’ in case of setbacks in the future. Whatever the case, ultimately the buffer will be spent, directly or indirectly, on our members, so it is in their interests that the buffer is as high as possible when the new system is introduced. In concrete terms, it can be used for the following purposes:
- Part of the buffer will be used to create the ‘reserves’ that are required by law, for example an operational reserve to pay for costs such as covering unforeseen expenses and compensating for errors.
- Part will be used to compensate active members who are disadvantaged when the averaging method used under the current pension plan is abolished.
- Part will be used to create the solidarity reserve to protect pension beneficiaries against pension reductions if the investment yields and other results fall short.
- What is left of the Pension Fund’s assets will then be divided among each member’s personal pension capital, using a specific allocation key.
The increase as of 1 April 2026 is the final indexation under the current pension scheme. The next adjustment to your pension will take place when we switch to the NexT Pension, the new pension scheme, on 1 January 2027. The financial buffer at that time makes it possible to start participants off with a higher pension. Please also see the questions ‘Why is it important to have a financial buffer when we switch to the new pension system?’ and ‘When will I receive the new (increased) pension amount in the NexT Pension?'
In January 2027, you will still receive the same gross pension amount as in December 2026. This is because the transition of pensions (“invaren”) based on the funding ratio as of 31 December 2026 will not yet be completed. In February 2027, this process will be finalized. In February, you will receive your new pension amount—which includes the increase resulting from the distribution of the buffer—as well as a retroactive payment of the increase for January. From March 2027 onward, you will receive the new pension amount each month.
We will illustrate this with an example calculation (all amounts are gross). Suppose:
- your monthly pension is currently €1,000
- during the transition, you receive a 10% increase
- your new monthly pension amount will then be €1,100
You will then receive:
- in January 2027: €1,000
- in February 2027: €1,200 (€1,100 for February plus a retroactive payment of €100 for January)
- from March 2027 onward: €1,100 per month
That is correct. Under the new system, you will have a personal pension capital that is invested. The value of your pension capital will fluctuate over time. You will be able to see how much pension capital you have at a particular moment. You will also be able to see what developments have affected it, either increasing its value (contributions and investment gains, for example) or decreasing its value (such as benefits that you have drawn or investment losses).
How much pension you can draw from your pension capital after you retire will not be predetermined: instead, it will depend on factors such as future investment yields and the interest rates when you retire. Those yields will depend on your age: while you are young, more of your pension capital will be invested in equities (shares) and its value will fluctuate more strongly than when you are older and it is invested more conservatively.
When the new system is introduced, your pension will also be affected more strongly by economic fluctuations: it will be more likely to go up in times of prosperity, but also more likely to go down when the economy is struggling. We will try to prevent a decrease in pension benefits as much as possible.
With regard to the increase in your pension: in the current pension system, this is always done through indexation. In new pension system your pension will not be indexed in the way that it is now. Whether your pension goes up depends on the amount of your personal pension assets. And also besides the investment return, the projection return will be determining the yearly adjustment of the benefit. More information about the projection return can be found on our Question and Answers page under the question: 'Is the calculation interest rate in the new pension system no longer important at all?'.
At the moment the new pension scheme comes into effect, the assets of Philips Pensioenfonds will be allocated to the individual pension pots of participants. The Fund’s buffer will also be distributed at that time. What remains of the buffer after forming legal reserves, paying compensation, and forming the solidarity reserve will be used for an extra payment into the personal pension pots. This is carried out in a balanced way. We will divide these payments among the members’ personal pension savings in line with our ambition under the existing pension scheme: ‘a pension for all our members that is based on full pension accrual and full indexation’. This takes into account indexation missed in the past as well as future indexation. A portion of the value of missed indexation and an equal portion of the value of future indexation will be added to your pension pot. The amount of this extra payment depends on your personal situation, and is primarily determined by the level of your accrued pension, your age, and whether you are an active member, non-contributory policyholder, or retired member. Read more in our onepager.
Related information
You might also be interested in the following information.
News overview
Visit our news page to find out the latest news, including information about increases in your pension through indexation.
Go to news overview
Financial position
Whether your pension can be increased, and if so by how much, depends, among other things, on the financial health of Philips Pensioenfonds. What is the pension fund’s current situation?
Go to financial position