The age at which you can retire is shifting further and further back. Certainly for younger employees there are still a lot of working years ahead. But older employees also have to count down a bit slower to retirement. No problem for one, the other would like to stop working earlier. But retire sooner, does that actually work?
Of course you can stop working whenever you want. But your state pension will not start before the moment you reach retirement age. If you want to retire earlier, you have to do without a state pension for the first period.
Retire earlier – Pension fund
Most employees build up pension through the employer. Sometimes you only build up your pension with a pension fund, but you may have to deal with multiple pension funds if you change jobs. In that case it is advisable to carefully consider whether you want to transfer your pension to the new pension fund or not if you change jobs. This is because each fund works on the basis of different conditions, such as early retirement. But most pension funds do want to contribute to an early retirement.
Earlier retirement, is that possible with my annuity or bank savings product?
If you accrue too little pension through your employer, then there is annual room. Within the annual margin of the past seven years, the reservation margin, you may build up a supplementary pension with an annuity or a bank savings account for tax benefit. In principle you take out a bank savings account or annuity insurance for a supplement to your income after you have reached retirement age. But with most insurers and banks you can have the money paid out earlier under certain conditions. Always discuss what the options are for you.
Earlier pension – Can that be done financially?
If you retire earlier, you surrender an average of 8 percent of your employee’s pension. So make a good calculation for yourself to see if you can miss this. You can also find exactly how much pension you have accrued on mijnpensioenoverzicht.nl. If it turns out that early retirement is not feasible, you can consider taking part-time retirement. For example, you will already retire 2 days a week and you will continue to work for 3 days. You then use a smaller part of the accrued pension and you continue to accrue pension on the days that you are still working.
Besides bank saving, you can of course also save for your early pension yourself. There are no tax benefits for this, but you are in control of saving yourself. You can deposit money at any time on a freely withdrawable savings account and you can always withdraw money. You set a certain amount on a savings deposit for, for example, 5 years at a fixed interest rate. You can, of course, adjust this term to the moment you want to retire earlier.