Monique is 60 years old and is considering retiring in two years’ time. She would like to combine her pension with a part-time job. Is that possible? If she opts for part-time pension, what are the rules?

Having had a fulfilling career at ING, Monique is considering early retirement. She also plans to start working in her son's business on a part-time basis after leaving ING, as her knowledge and expertise would be a great asset to his start-up. Is she allowed to combine pension and work?

Tax implications
If Monique retires less than five years before reaching her Dutch state pension (AOW) retirement age, while also continuing to work during these years, she'll be allowed to do that under Dutch tax law. And if she opts for a part-time pension, there are no implications either. She will, however, have to pay taxes on her additional income.

More than five years
If Monique’s AOW retirement age is more than five years away, she is not allowed to use her pension (not even on a part-time basis) and at the same time continue working. This is because the money she saved into her pension plan was tax exempt. If she were to receive her pension alongside income from work, her pension wouldn't qualify for tax relief, potentially resulting in taxation of her full pension accrual plus a penalty.

Statement of intent
If you wish to start using your pension (on a full or part time basis) while your AOW retirement age is more than five years away, ING CDC Pensioenfonds will send you a statement of intent. By signing this statement, you declare that you do not intend to perform any income-generating activities as from the starting date of your pension. We need you to sign this statement before we start paying out your pension.

If you have any questions about this, please contact the Pension Desk.