It is swarming with reports of doom. Over the past ten years, the occupational pension has not kept pace with inflation. As a result of this lack of indexation, the pension would have fallen in value by 20 percent. We have to work longer and receive less, they say. That sounds awful, but it doesn’t make sense.
Indeed, we have to work longer until we reach state pension age. As a result, we do not receive less pension, but more from the state pension age. The deferred employment pension increases by about seven percent for each year that it is deferred.
Moreover, you accrue more pension if you work one year longer. These two effects compensate for the lack of indexation. This is different with AOW. The deferred AOW remains the same, but the AOW increases with inflation. So it is: we work longer, but receive the same amount.
You can find your various pension pots together on the Mijnpensioenoverzicht.nl website. The AOW is also included. You will not only see the gross amounts, but also the net amount of the total pension.
The amounts on Mijnpensioenoverzicht.nl assume that you will continue to work for your current employer. If you get fired, it will likely decrease.
Anything can happen with taxation. Tax rates have actually fallen in recent years. Tax credits have also been used to implement tax cuts specifically for state pensioners, to compensate them for the lack of indexation of the labor pension.
This concerns the general tax credit and the elderly person’s tax credit. Since they are income-dependent from a certain level, retirees benefit less if their income is high. Double-modal AOW pensioners with a pension of 50 grand or more have not benefited from all tax adjustments. Approximate, because these types of income calculations are complex.
In short, there is little reason to panic if you continue to work and build up pension in the process. It is good to have a look at the net income on Mijnpensioenoverzicht.nl, because hardly anyone has ideal circumstances. Those who have not worked for a while or are divorced often have a disappointing pension.
Mijnpensioenoverzicht.nl is unfortunately not complete. It does not provide an overview of the pension that you have accrued yourself without an employer. You must keep track of the accrual of these types of annuities yourself. From the state pension age you can also choose to pay out such an annuity temporarily. For example, five or twenty years. If you know how much annuity you will receive per year, you still have to calculate how much that will be net.
In front of the Money Guide I made a Prinsjesdag special a few weeks ago. It also contains a calculation tool to determine how much you will earn net per year this year and next. I am happy to make this special available to readers of de Volkskrant: you can find it at geldgids.nu/kennismaken.
Reinout van der Heijden is editor-in-chief of the Money Guide
Do you have a question for Reinout? [email protected]