Pension - postponement of lump sum right of option

The envisaged date for the entry into force of the lump sum option right bill has again been delayed from 1 July 2025 to no sooner than 1 July 2026. This bill would allow those taking part in a pension scheme to take up to 10% of the pension as a lump sum on the retirement date. This is now the seventh time that the start date for this legislation has been postponed.  The delay has been caused by the government’s wish that the entry into force of this bill should be accompanied by a calculation tool. The idea is that this calculation tool will help people to understand more fully the consequences of their choice(s). The Nibud (National Institute for Family Finance Information) has conducted preliminary research which showed that there is a need for such a tool.

The development and further implementation of such a calculation tool, however, takes time. This means that it will not be available before the envisaged effective date of 1 July 2025. To give Nibud time to develop this tool and then enable the various pension providers to find a way to implement it, it was decided to postpone the effective date to no sooner than 1 July 2026. Nibud has indicated that, depending on its complexity, the development of the tool will take 8-10 months. The pension providers have indicated that they would need roughly 9 months to implement this legislation further to its adoption by both the House of Representatives and the Senate.  Taking all of this into account, it would appear that the date of 1 July 2026 is still ambitious.