The introduction of a law change in the Netherlands allowing retirees to withdraw a lump sum from their pension has been postponed again and will take effect on 1 July 2026 "at the earliest".

The new law 'revision of lump sum' has been delayed three times, with the previous announcement of the delay in November 2023, despite the law change being approved by the House of Representatives. However, it is yet to be approved by the Senate.

The lump sum scheme means that savers can withdraw up to 10 per cent of the total accrued pension in one go, which is only possible on the day of retirement.

Saver's monthly pension benefit will be permanently lower after withdrawing the lump sum and the option to first receive a higher and then a lower pension, as is an option with Dutch pension fund PFZW’s high-low scheme, will lapse.

PFZW explained that it could also have consequences for tax returns and the right to benefits, such as rent or health care allowance.

The fund said that for participants who are retiring soon and had counted on being able to withdraw an amount, the postponement is “annoying” as it has already been postponed several times.

According to Dutch Deputy Prime Minister and Minister of Social Affairs and Employment, Eddy Van Hijum, there must first be more clarity about the financial consequences of the scheme.

However, the fund said that no calculation examples are currently available, and it is “unclear” how high the lump sum would be for its participants. It stated that when more is known about the scheme it will keep its participants informed.

Speaking on this topic in the Senate, PFZW chairman of the board, Joanne Kellermann, emphasised how important "simplicity and comprehensibility" are for the participants regarding the lump sum.

"Anyone who wants to make use of this amount must understand in advance what they can do with this amount and what effect it has on their financial situation,” she explained.

“This is not only about your monthly pension, which will be lower, but possibly also about the effect on your health care or rent allowance.

“PFZW and other funds are developing tools for this, but the government also has an important role in providing information."

Initially, the law change was expected to be implemented in 2022 but was changed to 1 January 2023 and then postponed to 1 July 2024 at the earliest. As of November 2023, the new anticipated date was 1 January 2025.

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