Our system for providing old age benefits is facing major challenges as the financial security of pillars 1 and 2 is at risk. For this reason, we have developed a new model for the over-mandatory component of pillar 2, featuring time-limited annuities. This forward-looking pension model is attractive for both employee benefits institutions and pensioners.

Demographic changes, increasing life expectancy and persistent low interest rates will continue to have an appreciable impact on the level of pensions in the coming years. Employee benefits institutions are reacting to these trends by drastically reducing conversion rates to under 5%. The decision to take an annuity or lump sum at retirement is currently based on the traditional model of pension plans, which is often no longer adequate for the needs of today’s pensioners.