Early Retirement Pension in Zoetermeer: All Tax Consequences
Early retirement pension seems tempting, but leads to higher taxes, revision interest, AOW gap and lower benefits. For residents of Zoetermeer: first calculate your net loss. Average income decline 20-35%. Contact Legal Aid Office Zoetermeer (district of District Court The Hague) for free advice.
Main Tax Disadvantages of Early Retirement Pension
Your tax position worsens with early retirement pension. Key points:
- No employment allowance anymore: €5,052 (2024) lapses, tax burden increases 10-15%
- Revision interest: Up to 20% on stamped-off capital to the Tax Authorities
- AOW gap: €1,400 net/month less until AOW age (67 years)
- Lifelong pension reduction: 5-8% per year of early retirement
- No further accrual: Lower final pension
In the Zoetermeer region: District Court The Hague handles pension cases. Check District Court The Hague.
Tax Burden Without Employment
Pension income is taxed more heavily. You miss the general tax credit (€3,362) plus the employment allowance (€5,052 max. 2024).
2024 Rates
- Bracket 1: 36.97% up to €75,624
- Bracket 2: 49.50% above that
Modal income €40,000: working 15-20% tax, retired 25-30%. Difference: €4,000-€6,000 net less/year.
Revision Interest Explained
Revision interest: Levy on stamping off pension (taking lower amount earlier). Max. 20% on the stamped-off portion.
Example Zoetermeer Resident
€400,000 capital, 3 years early retirement, €100,000 stamped off: €20,000 revision interest. Ask your fund for details. Legal Aid Office Zoetermeer helps with calculations: Legal Aid Office.
AOW Gap with Early Retirement Pension
AOW gap: No AOW until age 67 (2024). For 3 years earlier cessation: 36 months x €1,400 net = €50,400 gap. Permanent impact on income.
Advice for Zoetermeer
For personal advice:
- Legal Aid Office Zoetermeer: Free help with pension tax questions
- District Court The Hague (Zoetermeer district): Pension files