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Pension could be cheaper and simpler

Reflex company interview | December 2012

What do you consider the main problem with the current pension system?

“The current pension system is too expensive and too complex. That is why more and more companies and employees want to take pension matters into their own hands, instead of being bound to one insurance company or pension fund.

In fact, it is somewhat strange that people can decide what bank to place their money with, but when it concerns pension, they are currently bound to one party. If we would eliminate this obligation, pension providers would work much harder to make the pension cheaper and simpler. That is good news for both the employer and the employee.”

What would be the first step to realize that?

“We have to listen to the end user better. He wants things to be simple and clear. Employers in turn also ask for simplicity and manageable costs. After all, employees see that the contribution is deducted from their salary every month, but don’t really understand how their pension works. Employers spend a lot of money on a pension scheme, but do not receive the appreciation from their employees they deserve. If we are open to new ideas, the pension could be cheaper and simpler.”

What could we do to realize that?

“A solution could be for employees to save for their own pension, using their own blocked savings account. They would be able to convert the balance on this account into a temporary or life-long payment plan. Subsequently, the employer makes sure that he properly addresses the risks of premature death and disability, by taking out a collective insurance contract for just these risks. That saves him costs. The responsibility for building a good pension would partially be transferred to the employees as a result of this. They maintain control over their own pension. This principle better fits the current zeitgeist.”

Location

Building "Yellowstones"
Nijverheidsweg 60/11
3812 PM AMERSFOORT

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OXYLO Actuarial Consultancy

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