Is your retirement date approaching? If so, we expect that from mid-2023 you will be able to withdraw up to 10% of your accrued pension as a lump sum. A lower amount is possible too. If you opt for this, your monthly pension benefit will be lower, though. You may have read on the internet that this option would be available from 1 January 2023. However, the government has decided to postpone it in order to give pension administrators more time to provide interested participants with adequate information.
If you opt for taking a lump sum from your pension, you can spend that money at your discretion. You may use it to pay off part of your mortgage, for example, or even to go on a long vacation or buy a boat.
What you should know
You will not be able to combine this new pension option with:
- an AOW-gap pension
- varying the amount of your pension benefits: high amount at first and then low
Check our website for more information on currently available pension choices.
What is also important to know:
Tax and benefits
Taking a lump sum from your pension may have negative consequences. For example, you could be subject to a higher tax bracket. Or benefits you may be receiving, such as care benefit or rent benefit, could be reduced or discontinued. These consequences will depend, among other things, on the amount of the lump sum you withdraw and your personal situation. It’s very important for you to be aware of this if you are considering this new pension option.
More information
Will you be retiring in early 2023? We will inform you of the pension options available to you after this summer.
