The new rules for pension
The Pension Agreement and its implementation
The rules for pensions worked well for years, but that is changing. That is why the laber unions, employers and the Dutch government have jointly drawn up new rules for pensions. Because we want everyone in the Netherlands to have a good pension, including the generations after us. The new rules for pensions have been in effect since July 1, 2023. The new rules for pensions mainly concern the pension that is accrued through the employer, such as your pension with SPF.
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Before all pension schemes have been adjusted, a lot still needs to be done. First of all, the elaboration of the Pension Agreement itself must be further elaborated on many points before it can be laid down in legislation. Secondly, social partners still have to make the necessary decisions. And finally, pension fund boards also have to make decisions. It is therefore not yet known exactly when the pension schemes administered by SPF will be transferred to the new rules.
The Dutch government also started a national campaign in 2023. You can follow developments on radio, television and social media. It is important for young and old to know what changes and what remains the same in the new pension system. The new website www.pensioenclarity.nl contains all kinds of information about the new pension system in simple, honest language.
Below you can read what is known so far about the new pension system and the new pension rules. What this means for your personal pension will become clearer in time. Of course, we will keep you updated.
General
The new pension system retains the strengths of the current system:
- If you are retired on a pension, you will continue to receive a pension for as long as you live.
- Pension remains one of the employment conditions in the contract of employment with your employer.
- You automatically accrue a pension by paying contributions together with your employer. You pay your share automatically from your gross salary.
- We share the costs and the risks, and we decide together. As a result, we are in a better position to absorb economic setbacks than if everyone acted alone.
- The idea is that the new system will be fairer and that the contributions paid for you will end up in your own pension savings fund.
- However, it is expected that the level of the new pension will be less certain than it is now because the investment performance of the pension fund will have to be directly factored into the pension benefits and the individual savings funds. As a result, the pension can be increased sooner, but it can also be lowered sooner if the situation is less favorable.
- The new rules for pensions emphasize what pension accrual is all about: using the paid-in contributions to invest and thus earn money for a good pension. We work together to create reserves for a rainy day. This way, we prevent one generation from being worse off than the other, such as if the economy is in a slump when you retire on a pension. We share that risk together.
- We will gradually take steps to apply the new system over the coming years. SPF must switch to the new pension scheme by January 1, 2028 at the latest.
- First, the elaborated agreement will be passed into law. After that, social partners and then the Board of SPF must make choices within the framework of this legislation.
Draw a lump sum
From 2025, you will be able to withdraw an amount. This is how it works: When you retire on a pension, you can choose to have part of your accrued pension paid out as a lump sum. This is laid down in a new law. But this is still under discussion in the Senate and the House of Representatives. The new pension choice will now take effect on 1 July 2025 at the earliest. This was announced by the government.
You cannot withdraw your entire accrued pension at once – you can withdraw up to 10% of your pension. If you withdraw a lump sum, your monthly lifelong pension will be reduced. You have to decide for yourself whether you can live the way you want to with that lower pension. At the moment, we cannot say what it means for everyone personally. We cannot yet make calculations or give sample amounts.
Lump sum and the Dutch Tax and Customs Administration (Belastingdienst)
Withdrawing a lump sum can have consequences for your tax return and for any benefits you receive, such as care benefit or rent benefit. The consequences depend on various factors, such as the amount of money you withdraw. Your personal situation also plays a role.
You can do what you want with the money
When you retire on a pension, you can opt for a lump sum. You can also decide what you spend your money on.
Choose between higher benefit or lump sum
If you stop working before your State Pension Age (AOW age), SPF offers you the option to choose a higher pension up to your AOW age. However, you cannot opt for a lump sum as well, as this combination is not permitted by law.