The new Pension Act: this is what it means for you
The new Pension Act has been passed. On 1 July 2023, a transition phase started that will last for a few years. Employers and employees can use that time to make agreements about adjusting their pension scheme. New rules will also be introduced for self-employed professionals (zzp’ers). Learn what the new Pension Act means for you.
What is the new Pension Act?
In the 2019 Pension Agreement, employers, employees, and the government made agreements about the future of pensions in the Netherlands. These agreements have now been written down in the 'Future of Pensions Act', also known as the new Pension Act (nieuwe Pensioenwet).
The new Pension Act in brief
The act has 3 purposes:
- A pension that grows faster
If the economy is doing well, pensions can grow more quickly. Pension providers can use the profit from investments more quickly to increase pensions. If the economy is doing less well, pensions can also be reduced. The new Pension Act arranges that there are reserves to limit the reduction as much as possible.
- Pension growth that is personalised and clearer
It will become clearer how your or your employee’s pension grows. Employees will have their own pension account, showing all the contributions they have paid. And the profit or loss made with this money.
- A pension that is better suited to changing jobs
Employees nowadays change jobs more often or start a business. The contributions paid by employees will go to their own pension at any age. In the previous system, most of the pension was accumulated at the end of one's career.
Why a new Pension Act?
Society is changing. More people are living longer. There are fewer people working than there are retired. And people no longer work for one employer all their lives. Agreements have been made in the new Pension Act to ensure that the pension system fits better with our modern society.
Has the new Pension Act already come into effect?
The transition to the new pension system started on 1 July 2023. But employers and employees still have a few years to make agreements together about adjusting their pension scheme. After that, the pension providers can start implementing these agreements.
What remains the same in the new Pension Act?
In the new Pension Act, the goal remains that employers and employees grow pensions together. Financial risks will continue to be shared with each other. Employers and employees pay premiums. The pension providers invest that money and pay out the pension benefits.
What will change in the Pension Act?
It will soon become clearer (in Dutch) what you pay in premiums and how much capital you build up. And also, how much pension you will receive once you retire. Pensions are more likely to go up when the economy is doing well and decrease when the economy is doing less well.
The self-employed must soon have occupational disability insurance (AOV). With compulsory AOV insurance for the self-employed, all working people are protected against the consequences of not being able to work.
As of 2020, the state pension age rises less quickly (in Dutch). The state pension age will remain linked to life expectancy, but less so than now. This is regulated in the Act on the temporisation of raising the state pension age (Wet temporisering verhoging AOW-leeftijd).
Together with employers and employee organisations, the government wants to ensure that everyone retires in a healthy way (in Dutch). For example, by retraining to do another job, or by taking extra leave.
Everyone who participates in a pension scheme is allowed to have a lump sum paid out once (in Dutch). This becomes a legal right. All pension providers must offer this. The amount is a maximum of 10% of your pension.
There will be new rules for the survivor's pension (nabestaandenpensioen). Such as for the partner's pension in the event of death before the pension would start (the retirement date).
What do you need to arrange for the new Pension Act?
Are you an employer?
The pension rules will be modernised in the coming years. You have to make new agreements about pension schemes, together with your employees. Sometimes you have to take steps yourself. And sometimes this is arranged per sector if you participate in an industry-wide pension fund. You may also receive a message from the insurer or premium pension institution (PPI) where you have your pension scheme.
You can find more information about the new Pension Act for each target group on Werkenaanonspensioen.nl (in Dutch).
Are you a self-employed professional (zzp’er)?
Then the new Pension Act gives you more room to arrange your pension with tax benefits. Visit onsnieuwepensioen.nl (in Dutch) to find out what the new Pension Act means for you.
Read more about pensions for entrepreneurs or pensions for the self-employed.
Questions relating to this article?
Please contact theNetherlands Chamber of Commerce, KVK