Draft law makes early retirement more attractive
Withdraw 10% lump sum
Currently, it is not allowed to withdraw a lump sum from your pension in the interim, but it is mandatory to use this for a lifelong benefit. With this draft law, you are allowed to withdraw 10% of the total amount at once with the right to freely spend. Note that this withdrawal will be taxed.
Tip: If you have a lot of savings, it is beneficial to address this first before you spend your pension (which is taxed at a lower rate). In this situation, it is wise not to make use of the new bill.
Early retirement becomes easier
The Early Retirement Scheme (RVU) is a compensation to cover the period up to the state pension age. In the current scheme, employers pay 52% on this compensation, which does not motivate early retirement. However, this fine no longer needs to be paid from 2021 to 2025. There are some conditions attached to this:
- The employee stops working no more than three years before reaching the state pension age;
- The compensation may not exceed € 21,200 per year.
Saving weeks of leave will be doubled
Tax-free saving for leave will be doubled from 50 to 100 weeks according to this draft law. This ensures that you can stop working up to two years before you reach the state pension age or you can take extra long periods of leave in between!
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Do you have any questions regarding this draft law? Or do you have other tax-related questions? We are happy to help! Please contact us using the details below.