Retiring later

There are several reasons to consider delaying retirement. Some people simply love their job too much to quit just yet. Others dread the empty schedule that retirement can bring. Or perhaps you haven't saved enough to retire completely. Thinking about receiving your pension later? Keep the following in mind:

According to the law, your pension must commence no later than 5 years after reaching your state pension age. After this period, it is no longer considered a pension for tax purposes, but as income from previous employment. This means that the Tax Authority will deduct income tax on the entire accumulated pension in one go. In addition, you will be subject to a penalty which can be substantial. For more information, please visit the Tax Authority's website.

If you continue working in your current job, you'll usually keep getting paid. You can postpone your pension, but not your state pension. So if you're receiving both your employer's salary and state pension, your total monthly income increases. This could mean you lose eligibility for certain benefits.

When you delay your retirement, it impacts the amount of your pension income. Some employers may stop paying pension contributions and instead offer you a higher salary. Whether you receive more pension income also depends on the type of pension you have. For instance, is there a certain amount insured for you per year? Or do you have a pension capital that you need to use to buy a pension income? The Uniform Benefit Statement (UBS) you receive from your pension provider(s) details the kind of pension you have.

A partner's pension is a benefit for your spouse in the event of your death. If you retire later, this can also affect the partner's pension. It's important to consider this and seek information about it.

There are pros and cons to working longer and retiring later. Whether it suits you depends on your priorities and your financial situation after retirement. Start by checking mijnpensioenoverzicht.nl to see how much pension income you can expect and what your partner may receive. This information will guide the decisions you make about your pension.

Whether continuing to work longer suits you often depends on your personal circumstances. A financial adviser can provide you with an overview of your finances after retirement and offer advice if you wish.