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‘Lump sum’ option postponed again

New pension rules
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The introduction of the ‘lump sum’ option has been postponed again. The commencement date of 1 January 2024 is not feasible. The new pension option will take effect on 1 July 2024 at the earliest. The government announced this on 5 July.

Taking 10% as a lump sum on your retirement date

With the ‘lump sum’ arrangement, you can withdraw a one-off amount of up to 10% of the pension you have accrued. This is only possible at the time when your pension starts.

Why has the introduction been postponed?

The House of Representatives wanted to discuss the new pension choice before the summer holidays. But they didn't make it. Pension funds need 6 to 9 months to properly inform everyone. As a result, introduction on 1 January 2024 is no longer feasible.

New pension option to take effect on 1 July 2024 at the earliest

The House of Representatives first has to pass the legislative proposal. Then the Senate has to approve it as well. The new ‘lump sum’ legislation will take effect on 1 July 2024 at the earliest. We will, of course, keep you informed.

Were you planning to exercise the ‘lump sum’ option? Then it is annoying that this new pension option is continually postponed. In fact, the date of 1 July 2024 is also not certain. Are you in doubt? Then contact us. Our team is at your service to help you with your pension options.

Read more about the lump sum.