What will my pension be worth in the future?
Everybody knows prices rise over time. But how expensive will life be in the future? And how do you know if your pension will suffice? To give you an insight, the pension overview you will receive in October or November your future purchasing power will be shown.
What is purchasing power?
For example, years ago you might have paid €1 for a loaf of bread. Today, that same loaf costs €2. By the time you retire, it could cost €4.
Now imagine your future pension is €20 per month. Looking at today's prices, it might seem as if you could buy 10 loaves of bread with that amount. But if a loaf costs €4 in the future, you would only be able to buy 5 loaves.
Without purchasing power, your pension would be shown as €20. But when purchasing power is taken into account, that €20 would have the same value as €10 today. In other words, purchasing power shows what your pension will really be worth and what you will be able to buy with it.
Watch the video
In this video, we explain what purchasing power is and why we show pension amounts in this way.