Taking out part of your pension in one go

From 2023, you will be able to take out part of your pension in a lump sum when you retire. You will then receive a maximum of 10% of your retirement pension in a lump sum. This amount can be spent freely. This is laid down in a new law that will probably come into force on 1 July 2023. Your monthly life-long pension benefits will be lower as a result. Also, taking out an amount in a lump sum can have consequences in terms of tax and any allowances or other benefits.

Please note: the law concerning a ‘lump sum’ has not yet been finalised. The information on this page is therefore still subject to approval. Last summer, the government proposed an effective date of the law of 1 July 2023. This date is no longer feasible. The government now proposes an effective date of 1 January 2024. We will keep you updated via this page.

These are the rules for a lump sum

  • You can take out an amount of up to 10% of the value of your retirement pension as a lump sum when you retire. A smaller part is also allowed (e.g. 5%). You can also choose not to take out a lump sum.

  • If you opt for a lump sum, this will have consequences for other pension options you have with us:
    • You cannot combine a lump sum with the option of temporarily receiving a higher pension and then a lower one, or vice versa.
    • You cannot combine a lump sum with the option of an AOW bridging pension.
    • You cannot combine a lump sum with an equal pension after death.

  • You can choose to postpone the payment of the lump sum. You will then receive the amount in the month of January after the year in which you retire. This is only possible if you retire in the month in which you first receive AOW. As a result, you may pay less tax. What if you opt for a postponement and die before the time of payment? Find out what the consequences are in the frequently asked questions below.

  • After choosing a lump sum, a pension of at least € 594.89 gross per year must remain (amount 2023). The government set this limit every year. 

This is the advantage of a lump sum

You get an extra option to better match your pension to your personal (financial) situation and wishes. You decide how you spend the money. You can use it, for example, to pay off your mortgage or to buy an (electric) bicycle. Or finally take that distant journey.

These may be the disadvantages of opting for a lump sum

If you opt for a lump sum, your life-long monthly pension benefits will be lower. Also, you can no longer make certain other pension choices. So think carefully about whether you want a lump sum or not.

If you opt for a lump sum, this may also have consequences in terms of tax and any other benefits such as rent or healthcare allowance. This is because your income will increase in the year of payment. As a result, you may pay more tax and not be entitled to allowances or have them reduced. Also, a lump sum can have adverse consequences if you receive income-dependent benefits or come under an income-dependent scheme. Such as social assistance benefits, benefits under the Surviving Dependants Act (Anw) or supplementary AOW benefits. You may have to pay back (part of) the allowance or benefits you received, because you will receive an additional pension amount.

The exact consequences depend on the amount of the amount paid and your personal situation. It is important that you are well informed about this. For example, by a financial advisor. For general questions about lump sum payments, you can also call or email our Customer Services Department.

Are you retiring soon?
Then you will receive a letter from us explaining how you can apply for your pension and the options you have. If your pension has fully commenced before 1 January 2024, you cannot opt for a lump sum.

Do you have a question or do you want to contact us?

  • What is a lump sum?

    If you retire from 1 July 2023, you can opt to have part of your accrued retirement pension paid out in one go. This is up to 10% of your total pension amount. This amount can be spent freely. By having an amount paid out in one go, your life-long pension benefits will be lower. A lump sum can also have consequences in terms of tax and any allowances or other benefits. Also, you can no longer make a number of other pension choices if you opt for a lump sum. So think carefully about whether you want a lump sum or not.

  • Can I spend the lump sum freely?

    Yes, you decide how to spend the lump sum. You can use the money, for example, to pay off your mortgage or buy a bicycle. Or finally take that distant journey.

  • What are some of the disadvantages of a lump sum?

    • Your monthly life-long benefits will be reduced. Therefore, it is important to check whether you will have enough pension left if you opt for a lump sum.
    • You may have to pay more tax. This is because your lump sum counts as income. As a result, your income in the year of payment may partly fall into a higher tax bracket and you will have to pay more tax. Opting for a lump sum can therefore be disadvantageous from a tax point of view. More information can be found on belastingdienst.nl. You can postpone the date of payment until the month of January following the year in which your state pension (AOW) commences. This is only possible if you retire in the month in which you first receive AOW. If you choose to postpone the payment of your lump sum, this may have the advantage that the lump sum is taxed at a more favourable rate.
    • Are you entitled to other benefits? For example healthcare allowance or rent allowance? Then the payment of the lump sum can have negative consequences for your allowances. This is because your income will increase in the year of payment. As a result, you may not be (fully) entitled to these allowances. And you may have to pay back (part of) your received allowances. Current information on benefits can be found on belastingdienst.nl
    • Do you receive social assistance benefits? Then contact your local council to discuss the possible consequences for these benefits. This is because your income will increase in the year of payment. As a result, you may not be (fully) entitled to these benefits.
    • Are you entitled to an income-dependent scheme? Such as benefits under the Surviving Dependants Act (Anw), supplementary AOW benefits or the supplementary income provision for the elderly (AIO)? If so, go to the website of the Social Insurance Bank for the consequences that a lump sum has for these benefits. This is because your income will increase in the year of payment. As a result, you may not be (fully) entitled to these benefits. And you may have to repay them (in part).
  • What does it mean for the other choices I have when I opt for a lump sum?

    If you opt for a lump sum, this will have consequences for other pension options you have with us:

    • You cannot combine a lump sum with the option of temporarily receiving a higher pension and then a lower one, or vice versa.
    • You cannot combine a lump sum with the option of an AOW bridging pension.
    • You cannot combine a lump sum with an equal pension after death.

    All other pension options can be combined with the choice for a lump sum. For example, after opting for a lump sum, you can choose to (partially) exchange the partner’s pension for a higher retirement pension. Check here for other options you have for your pension.

  • Can I use the lump sum?

    Will you be retiring from 1 January 2024? Then you can choose to have up to 10% of your retirement pension paid out in one go on your retirement date. The date of 1 January 2024 is subject to change as the law is not yet final. If you are retiring soon, you will receive a letter from us explaining how you can apply for your pension and the options you have. If your pension has fully commenced before 1 January 2024, then you cannot opt for a lump sum.

    Please note: the law concerning a ‘lump sum’ has not yet been finalised. The information on this page is therefore still subject to approval. Last summer, the government proposed an effective date of the law of 1 July 2023. This date is no longer feasible. The government now proposes an effective date of 1 January 2024. We will keep you updated via this page.

  • When can I apply for a lump sum?

    You can request a lump sum six months before your retirement date. This also applies to other options you have for your pension. If you are retiring soon, you will receive a letter from us explaining how you can apply for your pension and the options you have. If your pension has fully commenced before 1 January 2024, then you cannot opt for a lump sum.

    Please note:
    Unfortunately you cannot yet make this pension choice via MijnPGB. It is not yet known when this will be possible. We will keep you informed via this page. If you opt for a ‘lump sum’ and want to apply for your pension now, please contact our Client Services.

    Good to know: If you don’t opt for a ‘lump sum’, you can apply for your pension here

    Important point:
    Please note: the law concerning a ‘lump sum’ has not yet been finalised. The information on this page is therefore still subject to approval. Last summer, the government proposed an effective date of the law of 1 July 2023. This date is no longer feasible. The government now proposes an effective date of 1 January 2024. We will keep you updated via this page.

  • Can I opt for a lump sum if I retire before my AOW age?

    Yes, you can if you let your pension commence on or after 1 January 2024. You will then receive the amount on the date your pension commences. In that case you cannot postpone the payment of your lump sum until the month of January following the year in which your AOW commences. Please note that this may have consequences in terms of tax and any allowances such as rent or healthcare allowance. This is because your income will increase in the year of payment. As a result, you may pay more tax and not be entitled to allowances or have them reduced. A lump sum may also have adverse consequences if you receive income-dependent benefits or come under an income-dependent scheme. Such as social assistance benefits, benefits under the Surviving Dependants Act (Anw) or supplementary state pension benefits.

  • Can I postpone the payment of a lump sum?

    You can choose to postpone the payment of the lump sum. Then you will receive the amount in the month of January after your AOW commences. This means you pay less tax, because your income in the year after your AOW date comes under a lower tax rate. You only have the choice of postponing payment of the lump sum if you retire at your AOW age. You can find more information on tax rates before and after your AOW pension age on belastingdienst.nl.

  • When my temporary retirement pension (pre-pension) commences, can I also opt for a lump sum?

    Yes, you can. The choice for a lump sum is available upon commencement of all types of retirement pensions. So also in the case of temporary retirement pension. Please note that this may have consequences in terms of tax and any allowances such as rent or healthcare allowance. This is because your income will increase in the year of payment. As a result, you may pay more tax and not be entitled to allowances or have them reduced. A lump sum may also have adverse consequences if you receive income-dependent benefits or come under an income-dependent scheme. Such as social assistance benefits, benefits under the Surviving Dependants Act (Anw) or supplementary state pension benefits.

  • What is the approximate amount I can expect if I opt for a lump sum?

    That depends on the size of your pension and what percentage of your accrued pension you want to take out. At the moment, it is not yet possible to calculate this on mijnpgbpensioen.nl. We have to wait until the law has become final. Once the law has become final, we will adapt our systems accordingly. Then you can calculate the amount you can withdraw and what this means for your pension afterwards.

We will be happy to help. We can be reached by telephone on workdays from 08:00 to 17:00. You can call us on telephone number: 020 541 82 00 or send an email to ks@pensioenfondspgb.nl. You can also use our contact form on pensioenfondspgb.nl for your questions and comments.