Turning capital into income
In a defined-contribution scheme, payments depend partly on accumulated assets and the conditions used to determine benefits. Not every pension requires you to buy an income product yourself. Ask your administrator which procedure, choices and deadlines apply. Your scheme’s retirement date and AOW date need not be the same.
Which choices should you compare?
Check the permitted start dates, partner-pension options and any ability to vary payments over time. A choice between fixed and variable payments involves different certainty and risks. Ask whether another provider can be chosen and under which conditions; this does not work identically for every pension.
Compare outcomes using the same start date and partner cover. Consider possible later decreases, inflation and effects on your partner as well as the first monthly payment. Ask which decisions are final.
Lump sum: a future option
As at 27 October 2026, the general option to withdraw up to 10% at retirement is not yet available. Following Senate approval, the government announced a start date of 1 January 2029. The Wtp’s introduction in 2023 did not introduce this withdrawal right.
A lump sum reduces subsequent periodic pension payments and may affect tax and benefits. Do not treat it as available funding for retirement in 2026. For later retirement, verify the legislation and implementation conditions that apply at that time.
Compare net income
Pension payments generally count in Box 1. Final tax depends on total annual income, AOW age and tax credits. There are not just two Box 1 bands for someone below AOW age in 2026. Request a net calculation and check that payroll tax credit is not applied to several income sources simultaneously. Keep quotations and explanations of your choices.
Frequently asked questions
Can I take 10% in 2026?
No. This general option is not yet available. The government announcement of 16 June 2026 gives 1 January 2029 as the start date.
Must I buy pension income myself?
It depends on the scheme. Ask your administrator about the procedure, choices and deadlines.
Is the highest first payment always best?
No. Also compare risk, later payments, tax and partner cover.
Sources and reference date
Reference date: 27 October 2026. Check current conditions before making a decision.
Further reading
- Checking your Dutch UPO for errors: a complete checklist
- Closing Your Pension Gap: Five Strategies When Accrual Falls Short
- Dutch pension multiplier (Factor A) explained
- Dutch pension premium staffel: age-based contribution table explained
- Dutch SVB pension overview: requesting your AOW record
- Franchise and Accrual Rate: The Building Blocks of Your Dutch Pension
- Mijnpensioenoverzicht.nl: How to Check Your Accrued Pension in the Netherlands
- Pension Accrual in the Netherlands: How Much Retirement Income Will You Receive?
- Starting pension savings young: how and why it pays off