When you retire, you will soon be able to choose to withdraw a maximum of 10% of your pension in one lump sum. We call this 'lump sum'. The government is adding this new choice, so that you can tailor your pension even better to your personal situation and future wishes. With this amount you can, for example, pay off your mortgage or pay for a renovation. The goal is up to you. You can make this choice once: just before you retire. Because you receive an amount in one lump sum, your lifetime monthly retirement pension will be lower.

Lump sum payment can affect benefits and taxes

What you should keep in mind is that withdrawing a lump sum may affect:

• any supplements you receive and
• the amount of tax you pay.

The lump sum increases your income. Therefore, be well informed / advised. A financial advisor can help you determine whether withdrawing part of your retirement pension as a lump sum suits your situation.

Also read about 'lump sum' in the Nedlloyd Pension Newspaper Winter 2022

The expected start date of 'bedrag suddenly' has now been postponed from 1 July 2023 to 1 January 2024 and now 1 July 2024. However, this effective date is not yet certain. The bill still needs to be approved by both the Senate and the House of Representatives.