New entitlements and rules for pension
The way in which our pensions are arranged in the Netherlands will change. Together with employers and the trade unions, the government has drafted new agreements and regulations. The main aim is to make pensions more comprehensible, more personal and more future-proof. Not all the details are yet available. But here’s what we know at this point.
What stays the same?
Happily, not everything will change. You will still be able to accrue a pension through your employer. And you can be sure that you will receive a state pension from the government when you reach a certain age. If you currently accrue pension through your employer, you can be sure that you will receive a pension income.
An overview of your pension income is available in MijnZwitserleven.
What has already changed?
Slower increase in state pension age
One agreement in the Pensions Agreement already in force is that the rate of increase in the statutory retirement age will be slower.
From 2025, the statutory retirement age will increase by 8 months for each rise in life expectancy of one year, instead of by one year. As a result, the statutory retirement age will still be 67 years in 2027. The statutory retirement age will continue to be linked to life expectancy.
Think now about later
It took 15 years but the Senate approved the Future Pensions Act on 30 May 2023. This kicks off a major operation in the Netherlands: all pension schemes must be adjusted. On 1 January 2024, the law will take effect. We list the most important changes for you.
The most important changes
1. One type of scheme
From 1 January 2028, pension accrual will only be possible in a defined contribution scheme. This means that the amount of your pension income is not fixed in advance. You use the value of your plan assets to purchase a pension income from a pension provider. It will no longer be possible to accrue pension in any scheme in which the pension income is established in advance. Your Uniform Benefit Statement will show you what kind of pension scheme you currently have.
2. Contributions into the defined contribution scheme
An employer pays a contribution for each participant into the pension scheme. From 1 January 2028, all new defined contribution schemes will feature the same contribution for each participant, regardless of their age. There will no longer be any difference between contributions paid for younger or older employees.
3. Partner’s and orphan’s pension to become clearer
In the new system, the amount of pension income for your partner or child when you pass away will be clearly known.
- The partner’s pension if a participant passes away after their retirement date is 70% of the retirement pension.
- The partner’s pension in the event of passing before the retirement date will always be a percentage of salary (up to 50%).
- Orphan’s pension will be capped at 20% of the salary (40% for full orphans) and will be paid until the child reaches 25 years of age.
4. Continued investment after retirement date, variable pension income
You will be able to choose to continue to invest after your retirement date with all or part of your pension capital. For example, because you are not yet financially dependent on a particular pension income. If you would prefer more certainty about the amount of your pension, you will be able to choose a fixed pension income.
5. Lump sum payable, 10% freely disposable
You may have heard of it: withdrawing part of your accrued pension in one go. The exact conditions are not known at present. Currently, the expected effective date of the law is 1 July 2024. But what does lump sum amount really mean? And more importantly, what does it mean if you choose to do this?
6. Early retirement and leave savings scheme
Whether you can use these schemes depends on the options offered to you by your employer. Such schemes do not apply to the pension schemes at Zwitserleven. More information on early retirement and leave savings is available at rijksoverheid.nl. Search for early retirement and leave savings (vervroegd uittreden en verlofsparen).
Need advice on your choices?
We are happy to help you make choices for your pension. These choices may have major financial implications. Our guidance covers only your pension scheme with Zwitserleven. Whether a choice is right for you obviously depends on your whole personal situation, now and in the future.
Perhaps you should consider contacting an adviser, who can give you an overview of all your financial affairs and help you to make the most suitable choices.
Want to stay informed about the pension agreement or other news about your pension? Sign up for the newsletter in MijnZwitserleven.