Early Retirement Will Cost Money

2nd February 2007, Comments 0 comments

2 February 2007, AMSTERDAM — If you stop working before you reach the age of 65, you’ll have to continue to contribute to the general old-age pension fund (AOW), the new law stipulates. Those continuing to work after the regular retirement age will, on the other hand, receive a bonus in their tax returns. The prospective coalition members, the Christian Democrats (CDA), the Labour Party (PvdA) and the ChristenUnie, have agreed on this new regulation, to be introduced from 2011, De Telegraaf writes.

2 February 2007

AMSTERDAM — If you stop working before you reach the age of 65, you’ll have to continue to contribute to the general old-age pension fund (AOW), the new law stipulates. Those continuing to work after the regular retirement age will, on the other hand, receive a bonus in their tax returns.
The prospective coalition members, the Christian Democrats (CDA), the Labour Party (PvdA) and the ChristenUnie, have agreed on this new regulation, to be introduced from 2011, De Telegraaf writes.

The regulation will not concern those who have already retired. Only pensioners receiving 15,000 euros per year or more will be obliged to pay the fine, the amount of which will depend on how early the person retired.

The plan is a compromise between the election programmes of the PvdA and the CDA. While the former wanted everyone to contribute to the AOW, the latter insisted that only those who retired before the age of 65 should.

Originally, the PvdA had planned that every pensioner with a yearly income above 15,000 euros would pays 0.6 percent a year. According to the new law, the regular pensioners will not have to pay, and the fine for the early retirees will most probably amount to 2.4 percent of their yearly income.

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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