Insurance annuity – it offer a solution.

How does an annuity insurance work?

How does an annuity insurance work?

Do you want to be warm up later and enjoy your pension without financial worries? Then an annuity can offer a solution. With an annuity you not only supplement your own pension, you can also secure the income of your surviving relatives if you die.

The Dutch pension system consists of three pillars. First of all you have the AOW benefit from the government. In addition, for many people there is an employer’s pension. That is the second pillar. Finally, there is a third pillar. That is the pension income that you build up yourself. One of the options for supplementing your pension yourself is the annuity.

BacS is completely independent? This gives you a fair overview of the largest selection of savings accounts. This way you can easily find the best matching savings account with the highest interest.

What is annuity?

What is annuity?

The annuity has two variants. You can save money through a bank, also called bank savings or bank annuity. But you can also take out an annuity insurance policy with an insurer. In this article we will focus primarily on the insured annuity.

An annuity insurance policy is a type of life insurance policy. With an annuity policy you can build up additional capital for tax purposes after your retirement. Because the government wants to stimulate pension saving, the contribution to an annuity insurance is often deductible from income tax. However, there are also people who use the annuity to secure the income of surviving relatives after death.

Build up and pay annuity

Build up and pay annuity

The annuity has two phases: the accrual and the payment. In the build-up phase you have two broad options: you can pay a premium periodically (for example monthly or annually) or you can deposit a larger amount in the annuity insurance in one go. The latter is also referred to as a single premium policy.

By the time you approach retirement age, it is time for the benefit phase. The accrued annuity credit is released, you then have an expiring annuity. This allows you to take out annuity insurance policies with the same insurer. But with the money you can also take out an annuity that you pay out with another insurer or have the payment run through bank savings at a bank.

If you take out a paying annuity, you agree with the bank how you will receive the money. For example, you can agree that you will receive a monthly benefit from the annuity policy from the age of 65.

Annuity and tax

Annuity and tax

An annuity insurance is a tax-friendly form of pension savings. The deposit can, under certain conditions, be deducted from income tax. You also do not have to pay wealth tax on the accrued credit. When the annuity comes to payment, you do pay income tax on the amount paid. Read more about the capital tax exemption here.

Until 2006 it was fiscally attractive to use an annuity for early retirement. The bridging annuity has not been deductible since 2006. Even if you let the payment of your annuity start before the age of 65, you can no longer deduct premiums.

Benefits annuity

Benefits annuity

  • A pension gap may arise upon a change of employer. An annuity policy simply continues, because you pay the premium yourself
  • You can arrange for the payment after your death to go through for one hundred percent to your dependents
  • There is no limit to the payment term

Disadvantages annuity

Disadvantages annuity

  • High costs may be associated with taking out an annuity policy. It is therefore important to make a good comparison.

Take out annuity

Take out annuity

Because of the large offer, it is not easy to choose an annuity. The different annuity products have different conditions and regulations. Comparing annuity is therefore very important. There are several things that you can take into account. Like do I want a purchase price or a periodic contribution and do I want a lifelong or temporary benefit? All these questions must be answered before you buy an annuity.

Tip! Would you rather save for your pension on a regular savings product instead of in a bank savings account or annuity insurance? At BacS you can easily compare the interest and conditions of all types of savings accounts. And do you want to keep your money a little longer? Then compare deposit rates here.

Saving yourself (extra) for your pension? Save with a tax benefit and a higher interest rate than on a freely withdrawable savings account. Read how you build up (extra) pension with the flexibility that you want. 

How to cancel the deposit?

Can I cancel my deposit prematurely?

Can I cancel my deposit prematurely?

If you have your savings on a deposit, you have in principle secured your money for the agreed time, namely for a minimum of a number of months and a maximum of 20 years. In exchange, you will receive a higher fixed interest rate than if you decide to save without securing your money. However, one bank is stricter in the possibilities for terminating a deposit in the meantime.

Compare deposit?
Compare the largest selection of savings deposits, switch to the bank with the highest interest rates and no longer miss out on interest income.

Cancel deposit

Cancel deposit

A savings deposit is a savings account in which you deposit your money for a fixed time at a fixed interest rate. Because your savings are fixed for a longer period of time, for example for 10 years, a lot can happen between the moment of closing and the ending of the savings account. It is therefore possible that you need your savings earlier than agreed. Not every bank wants to return (part of) your money in the meantime. Only in the event of death will the savings be released free of charge at each bank.

A number of banks return your savings free of charge in more situations. Examples of this are divorce, disability, buying a house, unemployment or a marriage. Debts can also be a reason to be able to withdraw the savings free of charge. Every bank differs in this.

Do you not meet the exceptional situations that your bank poses? Then you may not have your money at some banks. You may withdraw an amount from other banks, but you must pay a fine.

Withdrawing cash – Fine

Withdrawing cash - Fine

The fine that you have to pay if you withdraw money in the meantime differs per bank. Cashieme is the only bank that does not charge a fine if you reclaim your savings in the meantime without giving a reason. The other banks charge a percentage of the withdrawn money per imperfect month or per year. A maximum percentage is often attached to this fine. The penalty percentage for interim withdrawal varies per bank, but is on average between 1.5 percent and 4.5 percent.

Tip! On BacS you can easily compare the highest savings interest and choose the deposit with the best interest, but also pay attention to the conditions. Under the ‘i’ you can read whether you can withdraw money in the meantime or not.

BacS is completely independent? This gives you a fair overview of the largest selection of savings deposits. This way you can easily find the most suitable savings deposit with the highest interest rate.

Auto credit simulation online

A simulation of auto credit in a few clicks

A simulation of auto credit in a few clicks

Whether it’s a first vehicle or a change of car, buying a car is an important step. The auto credit simulator on this page allows you to obtain, in just a few clicks, the monthly payment or the duration of the desired credit. This budgeting allows you to consider this purchase more serenely.

We offer several car loan offers at some of the lowest rates on the market, to help you realize the purchase of your vehicle as soon as possible. No booking fees are expected: the rates are known in advance. You can take the time to study your auto loan proposal at the best rate, whether you want to buy a new or used electric, gasoline or diesel vehicle.

An example to understand

An example to understand

If you borrow $ 15,000 over 72 months at the Fixed Annual Global Effective Interest Rate of 3.39% (fixed debtor rate of 3.33%)

You will refund 72 monthly payments of 230,13 $ (excluding optional insurance) for a Total amount due of 16,569.36 $ (interest: 1,569.36 $)

Monthly cost of optional insurance Death, Total and Irreversible Loss of autonomy, total temporary incapacity for work (subscribed with cardif Life Insurance and Cardif insurance various risks) in addition to the monthly amount of the credit $ 20.65. Total cost of this optional insurance: $ 1,486.80. Annual Effective Rate of this Insurance: 3.11%