The introduction of a measure in the Netherlands that would allow retirees to withdraw a lump sum from their pension has been delayed to 2024 at the earliest.

In a letter to the House of Representatives, Deputy Prime Minister and Minister for Poverty Policy, Participation and Pensions, Carola Schouten, stated that the introduction date for pension lump sums of 1 January 2024 was feasible.

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.

In the letter, Schouten indicated that it was important that pension providers were able to inform participants in a timely manner about the possibility of withdrawing the lump sum and the potential consequences of doing so.

Furthermore, more time was needed for the House of Representatives to properly discuss the details of the new pension option.

The Pension Federation said it considered a period of six to nine months to be crucial to be able to communicate carefully to participants about the change, and that how the debate in the House of Representatives progresses will give an indication of whether 1 January 2024 is a realistic date.

The House of Representatives and the Senate must both approve the bill for the change to come into force, with the government believing this to be feasible.

However, further postponement is possible if the debates and approvals do not progress as quickly as expected.

The Pension Federation noted that the questions to parliamentary questions related to the size of the target group for deferring the lump sum payment, the equal treatment aspects involved, the consequences for supplements and the provision of information by the government and pension providers, and a number of representative persons are shown for the consequences of the withdrawal of the lump sum for taxation and any surcharges.

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