News release

Lower House to consider bill on new 'Lump sum' choice

4 October 2023

After the fall of the cabinet, the House of Representatives always compiles a list of issues that the parliament wants to postpone until there is a new cabinet and issues that it still wants to deal with. The proposals that are on the table around pensions will continue. These include the law governing the choice to have 10% of your pension paid out on your retirement date.

What is the new lump sum option?
If the law passes, you will soon be able to have part of your accrued pension paid out in one lump sum when you retire. This is a maximum amount of 10% of your accrued pension. You will then receive this amount on your retirement date.

Withdrawing a lump sum does mean that you will receive a lower pension benefit each month thereafter. It may also affect your tax return or any benefits you may receive, such as housing benefit.

When will there be clarity on this new choice? 
It is not yet clear when the House of Representatives will discuss this new choice. The law enabling this new pension choice has already been postponed several times. The effective date now stands at July 1 2024, but may be delayed further. Not until the bill is debated by the House of Representatives and the Senate will this date be certain.