The introduction of a law change in the Netherlands that would allow retirees to withdraw a lump sum from their pension has been delayed again, to 1 January 2025 at the earliest, the government has announced.

It has already been delayed twice, with Minister for Poverty Policy, Participation and Pensions, Carola Schouten, initially stating that a postponed introduction date for pension lump sums of 1 January 2024 was feasible.

Then, in July 2023, Schouten wrote a letter to the House of Representatives and the Senate noting this was no longer feasible, and revised the date to 1 July 2024 at the earliest.

In the latest development, the new pension choice is scheduled to take effect on 1 January 2025 at the earliest, as both the Senate and the House of Representatives are yet to approve the bill.

The new pension option, upon introduction, will allow savers in the Netherlands to withdraw a maximum of 10 per cent of their accrued retirement pension on their retirement date.

The House of Representatives will not discuss the lump sum bill until early 2024, and the Senate then has to hold its own debates.

Furthermore, pension funds need sufficient time following parliamentary approval to inform their members about the new pension choices.

It is estimated that pension funds will need six to nine months for this, and therefore the date of 1 July 2024 was deemed to no longer be feasible.

ABP noted that while the government has indicated that 1 January 2025 was a realistic target, a further postponement was possible.

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