Risks 

There are a number of risks which may affect the amount of your pension. We call these risks as no one knows whether they will occur or not. If they do occur, they may have a negative impact on the amount of your pension.

Changes in your private or work situation

First of all there are risks that have to do with your personal situation or your work situation. A divorce, for example. Or you decide to work less. You can read the consequences on the page ‘What if’.

Reduced purchasing power

An important risk is the slow decrease of your pension's value due to inflation. This means the purchasing power of your pension also decreases. Let's say the prices annually increase with 2%. This means that in ten years, you will be able to buy about 20% less of everything you buy now with the same amount of money. That's a big difference! Pensioenfonds Ernst & Young tries to limit this risk by annually increasing the pensions (indexation). However, it's not certain that the pensions can be indexed.

The pension costs

The pension costs depend on many factors. This includes factors which we cannot control, such as the interest rates or the life expectancy. If these factors change, your pension will become more expensive. Pensioenfonds Ernst & Young has insured the pensions with Aegon. We have a contract with Aegon. If the pension costs increase, we do not need to pay any additional amounts. This means that the pensions are relatively certain.

Credit risk

The credit risk is the risk that Aegon is not able to meet its commitments. To control this risk, we have chosen to place the pensions with a reputable insurer in the market. Insurers are also under the supervision of DNB (De Nederlandsche Bank). This reduces the chance of insurers not being able to meet their commitments.

More information about the indexation policy