The new rules for pension applies to everyone who is accruing, or has accrued a pension, or who is retired in the Netherlands.
Will pensioners also be transferred to the new system?
Yes, in principle everyone will be transferred to the new pension system. All entitlements and all rights will be transferred to the new contract.
How will the new pension system affect the self-employed?
The new system will apply to a limited number of self-employed individuals who are required to save for their pension through the second pillar, either on a mandatory or voluntary basis. This concerns, for example, self-employed individuals working in the painting sector or self-employed individuals who make use of voluntary continuation after their employment contract is terminated. New tax rules also apply to self-employed individuals who save for an individual pension through the third pillar. In the long term, self-employed individuals will be required to take out insurance against incapacity for work. This proposal will be developed in greater detail.
Will young people be paying less premium and older people more?
No, everyone will pay the same premium. However, young people will receive a longer return on the same premium so a young person will ultimately receive a higher pension over the same euros in premiums. So, when you’re young, your contribution is more profitable and you get a higher return. As you get older, your contributions yield less and less.
What steps will be taken until January 1, 2027?
In general terms, there is an agreement about the new pension rules. In the coming years, the government, the funds and employers’ and employees’ organizations will continue to discuss the details. The new legislation is expected to take effect on January 1, 2023. A transitional phase will then follow, during which everyone in the Netherlands will receive information about their individual situation. In the meantime, the social partners and the pension funds are making sound agreements about specific subjects, the transitional scheme, pension savings and any compensation. By January 1, 2027, all pension funds must implement the new pension rules.
When will I know for sure what the amount of my pension income will be?
The annual statement provides an estimate of the expected pension in normal, good or bad weather. This overview is periodically adjusted on the basis of new pension accruals and economic developments. With the transition to the new system, insight is also provided into the expected pension before and after the transition. In this way you can see what changes will result from the transition.
Will I have the option to stay with the current system?
The new pension rules apply to everyone who is accruing, has accrued or receives a pension in the Netherlands. Everyone will be transferred to the new system. The pension that has already been accrued under the current system will be transferred to the new pension system with the associated rules by default. The old and the new pension accrual will therefore remain the same.
Will I get a better pension with the introduction of the new pension contract?
In general, the expectation is that, based on history and without any guarantee for the future, participants will benefit from the new pension contract over the full range of years. Of course, this is highly dependent on the returns.
What will happen to the pension I have already accrued?
The pension that has already been accrued under the current system will be transferred to the new pension system with the corresponding rules by default. The old and new pension accrual will therefore remain the same.
Will I be able to retire sooner in the new pension system?
Yes, this will be an option. The agreement states that employers can make agreements with their employees to retire earlier.
Is the new system more uncertain for my pension income?
Not really. The current system offers only a semblance of certainty; for example, there has been no indexing for years. The new pension system is more realistic and easier to explain. Indexation can take place sooner if things are going well. It also depends on how you interpret uncertainty. In the new system, the pension will move more often, but probably often with small movements.
How does the one-time withdrawal of an amount from my personal pension pot work?
It looks like in the new scheme it will be possible to make a one-time withdrawal of 10% of your accrued pension when you retire. As a result, you will receive a one-time sum of money. The monthly pension amount will be slightly lower as a result. It is not mandatory to take the 10%.