From 2023, you can have up to 10% of your pension paid out in one go on your pension date in Rijswijk. This is called the 'lump sum' payout. Discover the benefits and risks.
What does the lump sum entail?
With the lump sum, you can withdraw a maximum of 10% of your accrued pension once your pension starts, even if you live in Rijswijk.
Conditions for withdrawal
- Maximum 10% of your old-age pension
- Only possible around your pension date (up to 10 years earlier or later)
- You must apply for this in time with your pension fund
- Your monthly payout will be permanently reduced
Pros and cons
| Pros | Cons |
|---|---|
| Immediately available capital | Always lower monthly pension |
| Option for mortgage repayment | Tax on the one-off payout |
| Reduce debts | Risk of loss of benefits |
| Finance home improvements | No security with quick spending |
Tax rules for the lump sum
You pay income tax on the lump sum:
- It counts towards your annual income
- You may fall into a higher tax bracket
- Possible effect on benefits
Frequently asked questions about pension payout in Rijswijk
Is it possible to withdraw more than 10%?
No, the law stipulates that 10% of your old-age pension is the maximum.
What does this mean for my partner's pension?
Withdrawing the lump sum can also reduce your survivors' pension.
Am I required to use the amount for debts?
No, you decide for yourself what to spend it on, but take into account a lower monthly pension.
Additional questions and answers
How can I apply for the lump sum in Rijswijk?
You apply for this with your pension fund, often digitally or in writing. Do this well in advance of your pension date. The fund will assess whether you meet the criteria and calculate your payout. After approval, you will receive the amount, but your monthly payout will decrease permanently.
What if I withdraw the amount in a year with high income?
The amount counts as additional income, which can lead to a higher tax rate. Consult an advisor or use a tax tool to calculate the impact. Another year may be more advantageous.
Can I use it for a luxury trip or purchase?
Yes, you are free in your spending. However, consider the consequences of a lower pension and whether it is not better to invest in financial security, such as home adaptations in Rijswijk.
How do I know what 10% of my pension is?
Your pension fund provides insight into this amount via your overview. Roughly, you can multiply your annual pension by 0.10, but remember that tax is withheld on it.
What does this mean for my benefits in Rijswijk?
A one-off high income can affect benefits such as rent or healthcare allowance. Inform the Tax Authorities and use a calculation tool to determine the impact.
Can I still withdraw later if I am already retired?
Yes, up to 10 years after your pension date this is possible. Actively apply for this with your fund. The reduction of your monthly pension and tax still apply.
Is mortgage repayment with this amount smart?
It can be advantageous due to lower monthly costs, but weigh this against a permanently lower pension. First calculate what it yields you.
For legal questions about pension schemes in Rijswijk, you can contact the Rijswijk Legal Advice Centre. In case of disputes, you can go to the District Court of The Hague.