How secure is your pension?

The level of your pension is not fixed. This is because Philips Pensioenfonds has to deal with, among others, the following risks:

• Low interest rates make pensions more expensive. They mean that Philips Pensioenfonds needs more money to be able to pay the same pension.
• On average, people are living ever longer. This means that we have to pay pensions for longer.
• The accrual percentage of 1.85% is not fixed. Under certain circumstances it can be lowered.
• The results of our investments may be worse than expected.

Each year Philips Pensioenfonds seeks to increase your accrued pension by the level of the collective scale adjustment within Philips (this also applies if you work for Signify and Versuni). This is known as ‘indexation’. It cannot simply be assumed, however, that indexation will take place. Whether and, if so, to what extent pensions will be increased by indexation depends on the financial assets of Philips Pensioenfonds. In the past three years Philips Pensioenfonds increased the accrued pensions as follows:

If we have insufficient financial buffers, we take – if necessary – one or more of the following measures:

• We do not (fully) increase your pension by means of indexation. 
• In the most extreme case we reduce your accrued pension.
• The premium available for your pension may be insufficient in a given year. If the premium is insufficient, you may accrue less pension.