When will you be able to withdraw a lump sum from your pension?

Will you be turning 67 in the months from 1 July to 1 October 2023? If so, please bear in mind that you will be receiving your ‘pension letter’ later than usual. That's because the introduction of the new pension option of withdrawing a lump sum is expected to be postponed again. We are sending you this email to explain what this means for you and how we can help you when you retire.

In 2020, the Dutch government announced that a new retirement option would be made available for new pensioners. The new option would allow you to withdraw up to 10% of your pension as a lump sum with effect from 1 January 2023. We sent you a letter about this in July, which you can read here.

Earlier this year, the introduction of the new option was postponed by six months. And now the postponed starting date (1 July 2023) no longer seems feasible either, because the debate regarding the new legislation is taking the Lower House of Parliament more time than planned. We expect that the government will announce another delay soon.

What will this mean for you?
Of course, you can retire in 2023 as planned. However, you will not be able to withdraw a lump sum from your pension until further notice. In any case, you won't be able to make the withdrawal if your retirement starts before 1 July, and perhaps not before the end of the year either.

Given the uncertainty, we are postponing the dispatch of our ‘pension letters’. These letters specify the gross and net amounts of pension benefits you are expected to get, as well as the amounts of pension your partner will get (if you have one). The letter also includes a folder and a form to report your choices to us, for example if you want to vary the amounts of your pension benefits.

Normally, we send this letter to everyone six months before they turn 67. Now, we will wait from month to month for the government to clarify the situation. If we haven't received any confirmation by 1 March 2023, we will dispatch the letters anyway. That will give you plenty of time to report your pension choices to us.

What can you do?
If you’d like to withdraw a lump sum from your pension next year, you will have to wait until the situation has clarified. This also applies if you are thinking of starting your retirement before you turn 67. We expect that lump-sum withdrawals will be allowed for employees whose retirement starts on or after 1 January 2024. A lot is yet to be confirmed, but we will inform you as soon as we know more! If you have any questions, please contact the Pension Desk.