One-time sum delayed for the 7th time, Nibud calculation tool in development
Publication date: 25 March 2025
The introduction of a one-time sum option has once again been delayed, to no earlier than 1 July 2026. Minister of Social Affairs and Employment Van Hijum stated in the letter dated 13 March 2025 that this delay is necessary so participants can be well-informed about their choice for a one-time sum. The option allows participants to withdraw a portion of their pension payment in one lump sum. To facilitate this process, a calculation tool is needed to clarify the financial implications of the choice.
Nibud preliminary research identifies three variants of a calculation tool
Nibud conducted preliminary research to map out the requirements for a calculation tool. According to Nibud, three variants of a tool are conceivable:
- Orientation tool: This variant qualitatively outlines the options surrounding retirement and targets individuals aged 55 or 60 and older. It does not provide decision-making guidance at the moment of choice. Such a tool does not meet the sector's requirements.
- Limited calculation tool: This variant supports the decision-making phase but cannot convert amounts to a different start date. The participant must enter the amounts themselves. The result can be displayed with a risk meter instead of exact amounts.
- Advanced calculation tool: This variant supports decision-making and can convert amounts indicatively to a different start date. However, the tool is more complex and requires more input from the participant.
Nibud advises that the tool should at least address five components:
- General information about the one-time sum.
- The possibilities of a one-time sum, such as amount and timing.
- Effects and risks, such as the impact on taxes and benefits.
- Alternative choices at the start of the pension payment and warnings against stacking choices.
- Referral to pension providers, third pillar providers and advisors for concrete decision-making.
Simplicity and user-friendliness are essential for the success of the tool
The research emphasises that the final tool must be simple and easy to use, especially for vulnerable groups. Too complex tools can lead to errors and incorrect conclusions. Therefore, aids must be available to assist the participant in finding the correct data, especially since automatic data sharing (by Tax Authority, insurers, pension providers) with Nibud is not legally permitted.
Nibud also mentions the possibility of offering the tool (for a fee) to providers. Providers who opt for this could integrate the tool into their own choice environment and possibly add extra functionalities. Furthermore, automatic data exchange with other pension providers, at the participant's request, is legally permitted. For pension providers, a tool for the one-time sum can be supportive in the choice guidance they must offer. However, the tool for the one-time sum option does not relieve pension providers of their statutory obligation to provide adequate choice guidance.
Next phase
The development of the calculation tool is expected to take approximately eight to ten months, making the tool operational at the beginning of 2026, according to the Minister. Although the tool does not fully support all specific social security benefit schemes, it will provide general support for the one-time sum option. For specific consequences of the one-time sum for benefits, participants can use the existing calculation tool on the Tax Authority's website.
Participants wishing to use the one-time sum will need to be patient for a while. Once the pension payments have started, it is no longer possible to withdraw the one-time sum. Therefore, it is desirable that the one-time sum option becomes effective soon. However, I do not rule out further delays, as the current focus in the pension world is on the Future Pensions Act.
