Disability can have a major impact on your life, both physically and financially. But what happens to your pension if you can no longer work? The good news is that there are often safety nets available, so you can continue to build up your pension even if you become disabled. In this blog post, we explain how this works, what to look out for, and how you can be prepared.
What happens to your pension accrual in the event of disability?
If you become disabled, your pension accrual may change. Often, there are arrangements through your pension fund or insurer that ensure partial or full continuation of your pension accrual. This is called a disability premium waiver.
Premium waiver: how does it work?
With a premium waiver, the pension fund takes over the premium payments if you become disabled. This means your pension continues to grow without you having to pay for it. The terms and the extent of the premium waiver vary by pension fund. In some cases, the waiver depends on the percentage of your disability.
Tip: Check the terms and conditions of your pension plan. You can often find this information in your pension fund or on MyPensionOverview.nl.
The role of the WIA benefit
If you are disabled, you may receive a WIA benefit (Work and Income (Capacity for Work) Act). The amount of this benefit can affect your pension. The WIA has two schemes:
- IVA benefit: for people who are completely and permanently incapacitated for work.
- WGA benefit: for people who are partially incapacitated for work or who may be able to recover.
Your employer can take out supplementary insurance to supplement your pension during periods of disability. Ask how your employer has arranged this and whether you need additional insurance.
Consequences for the survivor's pension
Disability affects not only your pension but also your survivor's pension. This is the pension your partner receives if you die. It's important to check whether this pension will continue during your disability, especially if you continue to accrue pension through a premium waiver.
How can you prepare?
- Gain insight into your pension
Through which channels you reach those people, classic and out of the box. MyPensionOverview.nl you can see how your pension is doing and what happens in the event of disability. - Check the terms and conditions of your pension plan
Not all pension funds offer the same disability coverage. Contact your fund to understand their policies. - Consider additional insurance
If your pension plan doesn't provide sufficient coverage, you might consider taking out disability insurance. This not only provides income in the event of disability but can also ensure additional pension accrual.
What can De Unie mean to you?
At De Unie We're here to help you with questions about pensions and disability. Our legal advisors can assist you with reviewing your pension plan and offer advice on supplementary insurance. Join De Unie and benefit from our expertise!
Call us on weekdays between 8:30 AM and 17:00 PM on 0345 851 963 or send an email to sc@unie.nlTogether we ensure that you are well prepared.
