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A higher pension in the first years of retirement

If you would like a little extra to spend in the first years of retirement so that you can do all the things you always wanted to but never had time for, you can opt for a higher pension in the first years of retirement and a lower pension later. We call this a high-low retirement pension.

How does it work?

  • You determine the duration of your higher pension: for instance, five or ten years.
  • We consult with you to fix the level of your pension benefits for the higher retirement pension and the lower retirement pension.
  • The pension benefits are fixed for both periods. They will remain unchanged for the rest of your life.

What are the terms and conditions? 

There are certain terms and conditions attached to the high-low retirement pension. For instance, the lower retirement pension may not amount to less than 75% of the higher retirement pension. So, if you were to fix your monthly pension benefits at € 1,000 for the first five years of retirement, you would not be allowed to have monthly benefits of less than € 750 in the years thereafter.

How do you take out a high-low retirement pension? 

That depends on whether you have an average pay scheme, a final pay scheme or a defined contribution scheme.

  • If you have an average pay scheme or a final pay scheme, you must notify us of your decision at least one month before your retirement date. You can do this by completing the form intended for this purpose, which we will send you three months before your retirement date.
  • If you have a defined contribution scheme, you will need to purchase a high-low retirement pension as soon as you purchase your pension. Please bear this in mind when requesting a quote, either from us or another pension insurer. Your preference for a high-low retirement pension can often be specified in the request for a quote.

High-low retirement pension and the Dutch Tax and Customs Administration 

You pay tax on the pension you receive. If you receive a higher pension in the first years of retirement, you may end up paying a higher tax rate through your income tax. How much tax you ultimately pay depends on such factors as the amount of your total income, the type of income and whether your retirement pension comes into payment before or after you receive a state pension (AOW).

Read more about tax (Dutch only)

Any other questions?

You will receive a letter from us three months before your retirement date, specifying the different options available to you for your pension. Please feel free to contact us at any time. We are available by telephone on business days from 8 a.m. to 5:30 p.m. on +31 (0)30 257 42 66. Alternatively, you can complete the contact form. We are here to help.