Pension: a financial crossroads for entrepreneurs

As an entrepreneur, you are used to making your own choices. But did you know that the same applies when you retire? Many people think that retirement starts automatically once the state pension starts, but it is precisely around your retirement date that important decisions are on the table - with sometimes lifelong consequences.

More than a benefit
Pension is not just a monthly payment. It is a capital built up to give you financial peace of mind in the years you are no longer working. Even if you have built up pension through an annuity or other product, it is good to realise that it represents a substantial value. With a monthly payment of €1,000 gross, we are soon talking about more than two tonnes of underlying assets.

Timing is everything
You decide when your pension starts. Many entrepreneurs choose to have their pension start at the same time as the state pension, but it doesn't have to. You can also stop earlier - up to ten years before your state pension - or start later. Retiring earlier means a lower monthly benefit, starting later actually yields more. What suits you best depends on your financial situation, health and plans for that stage of life.

Higher-lower: responding to your pace of life
A commonly used option is the high-low construction. Here, you choose to receive a higher benefit in the first years of your retirement, followed by a lower benefit later. Useful if, for example, you still have a mortgage nearing maturity, or just want to travel more or invest in other plans in the early years.

Include partner in your choices
If you are with a partner, it is important to think about the survivor's pension. This provides income for your partner in case of death. In some situations, it can be advantageous to (partially) buy this off in favour of a higher pension for yourself - provided your partner is financially independent. Of course, you can also choose to actually extend this.

Advice is not a luxury
The choices you make on your retirement date are often irreversible. Your retirement is a time of reorientation. By making conscious choices, you ensure that your assets really work for the future you envision.