V+ increases your pension assets securely
Upon the collection of pension assets, the supplementary funded pension solution V+ pension insurance allows you to earn from the growth of securities markets and at the same time to be protected against the decline of markets.
According to V+ agreement your pension assets are invested in stock funds of higher yield and risk at the beginning and gradually are transferred to bond funds of lower risk and yield. This allows you to collect the pension assets in a profitable and secure manner, without following the investment structure continuously.
At the end of each insurance year V+ agreement gives a guarantee for the growth of pension assets. You will get a guarantee for the contributed amount in case of securities markets fall, the amount will only be reduced by contract fees.
By clicking on the chart you will see explanations how your pension assets grow in different market situations.
Price list of V+ pension insurance »
Conditions of V+ pension insurance »
How do pension assets grow in case of increasing markets?
You will conclude a V+ pension insurance contract and bind EUR 2000 with the agreement. Furthermore, you will make monthly contributions in the amount of EUR 50. During the first collection year the yield of funds is 25% and due to that your pension assets grow by 25%. Additionally the growth is gained by your contributions made during the year.
The guaranteed value of pension assets is fixed every year on the same day you concluded a V+ agreement. Your pension assets do not fall below the guaranteed value. During the first collection year your pension assets grew depending on the increase in markets and by your monthly contributions. During the second collection year the market is as favourable as before, due to which your pension assets grow by another 20%.
At the beginning of third year the growth of last year will also be taken into consideration upon fixing the guaranteed value. Thus the invested pension assets have grown by 50% within two years.
The money of V+ pension insurance is invested in two funds »
What happens if the markets fall?
By the beginning of fourth collection year the value of fund investments has fallen by 13%. However, upon fixing the guaranteed value of your pension assets, the basis is the highest guaranteed value achieved during the collection by that moment. The total amount of monthly contributions is also added. The guaranteed value is reduced only by annual contract fees.
The yield of funds decrease even more, but your pension assets do not decrease. You will continue making monthly contributions and pension assets increase on account of these. Upon fixing the guaranteed value of pension assets, the contributions made during the previous year are taken into consideration minus the commission of units (1% of the amount of contributions) and the administration and guarantee fees, in total 1.5% of the value of assets.
In the sixth year of assets collection the stock prices start rising again and reach the level of guaranteed value that had been fixed before. In the sixth year pension assets grow similarly to the previous year leaning on the monthly contributions. The new rise of the market does not affect the growth of your pension assets as long as it has not exceeded the guaranteed value of your agreement.
V+ agreement ensures the preservation of collected pension assets »
What happens if the markets start rising again?
By the beginning of seventh collection year the stock prices reach the level at which the guaranteed value of your pension assets has been fixed. In addition to monthly contributions your pension assets now start rising at the same rate as the securities markets.
In the eighth year the guaranteed value of pension assets is fixed according to the amount of monthly contributions and the yield of funds, which resulted an additional growth by 10%. In the eighth year the market is again rising and your pension assets grow at the same rate.
If you should retire right now, Swedbank will pay you pension according to the amount fixed at the boom of the market. The supplementary contributions that you have made will also be added.
The contributions of V+ pension insurance are flexible »