Variable or fixed pension benefit

You will accrue a pension capital in the pension scheme of SNPS (Shell Netherlands Pension Fund Foundation) and in the Shell Net Pension Scheme. You will use this capital to purchase a variable or fixed pension on your retirement date. This choice applies to both retirement and partner's pension. Because this is an important decision, we think it is wise to engage a financial advisor.

Fixed pension: you will purchase your own benefit
If you opt for a fixed pension benefit you will purchase a benefit with your pension capital at once on your retirement date. You will do so yourself from an external pension administrator of your choice. You can usually make additional pension choices depending on the pension administrator you have chosen. On your retirement date, the amount you receive each month will be fixed.

Variable pension: your pension continues to be invested
You participate in the Collective Variable Pension (CVP) of SNPS. Your pension continues to be invested after the start of your pension. This allows you to benefit from positive investment results. Conversely, if the returns on investments decline, you will also suffer a disadvantage. The results – profits and losses – are incorporated into your pension in the CVP spread over a period of 5 years. This helps to prevent major fluctuations in your pension, but your pension will vary each year as a result.

Watch the video Spreading of results below to learn more.

In the year that you turn 58 you will make a provisional choice
In the year that you turn 58 you will make aprovisional choice for a fixed or a variable pension. You make a final choice on your retirement date.

You determine what suits your financial situation
We have set out below the characteristics of both a fixed and a variable pension:

Fixed pension

  • You have certainty about the amount of your pension.
  • When purchasing your benefit, you are dependent on the interest rate at that time.
  • Because your pension is not invested, you do not benefit from positive investment results. Conversely, if the returns on investments decline, you will also suffer a disadvantage.

Variable pension

  • Your pension benefit changes every year.
  • You have less risk because your pension is purchased gradually from age 58.
  • You benefit from positive investment results. Conversely, if the returns on investments decline, you will also suffer a disadvantage.
  • A variable pension (CVP) is expected to pay out more than a fixed pension in the long term. But if times are bad, there is a risk of a CVP ultimately paying out less than a fixed benefit.

Would you like to retire (early)?
Please send us the form SNPS (Part-time) Pension earlier or later (pdf) at least 6 months before you want your pension to commence.