Traveling around, reading your bookcase and spending time with (grand)children: that is often what we envision when we think of retirement. Yet more and more people choose to continue working. This has a lot of advantages: from the daily rhythm to extra income. But beware, there are a few important points to note. We list them.
1. Discuss it on time
Most collective labor agreements or employment contracts state that your contract ends when you reach state pension age. Is that the case, but would you still like to continue working? Consult with your employer about a new contract in good time. Does your collective labor agreement say nothing about termination of employment at the state pension age? In that case, your existing contract will in principle continue, unless the employer cancels the contract when you reach state pension age – this can be done a little easier once, but only around the time you reach state pension age.
2. Pay attention to special rules
Special rules apply from your state pension age. Dismissal does not have to be tested preventively at the UWV or the court, and the notice period is only one month. Did you only enter into the agreement after your state pension age? In that case, the 'ordinary' dismissal law applies, with the exception of a number of special conditions. For example, you can indicate to your employer that you want to work more or fewer hours. Your employer can agree to this, but this is not necessary.
3. Keep an eye on your rights as an employee
Even if you no longer have to work, you are still entitled to the minimum wage and minimum holiday allowance. Are you getting sick? Then you are entitled to continued payment of wages for a maximum of 6 weeks. Your employer no longer has to pay many contributions from your state pension age. As a result, you are no longer insured against unemployment and incapacity for work. And will you be fired? Then you are not entitled to a transition payment. Because you pay less tax and premiums, you yourself are more profitable and you are also a financially attractive employee for the employer.
4. Provide extra income
You usually receive two benefits from your AOW age: the AOW benefit and the supplementary occupational pension benefit. The first is a basic pension from the central government, which everyone who has lived in the Netherlands receives. If you have lived abroad, this may affect the amount of your state pension. You receive a company pension if you have participated in a pension scheme with a pension fund or insurer. Have you accrued pension with multiple employers? Then you may receive several company pensions.
Do you also earn a salary from your state pension age? Then you will continue to receive your AOW and pension benefits. The height remains the same. The AOW benefit starts from your state pension age. You can often postpone your supplementary pension benefit or start it earlier. If you delay, you will receive a higher benefit later. If you start it earlier, you will receive a lower monthly pension benefit
5. Avoid having to pay additional taxes
From your state pension age you pay a lower tax rate and fewer premiums. This means you have more net left over from the same gross income. Do you receive a salary, an AOW and a pension benefit? Then pay close attention: it is possible that you pay too little tax and that you have to pay extra after your assessment. In addition, the tax credit for the elderly for an income of € 44.770 will be gradually reduced to € 0 for an income of € 58.170. Complete a provisional assessment to avoid having to pay extra all at once. Also ensure that your payroll tax credit is only offset against one income.
More information
Do you have any questions about this? Feel free to contact us, the experienced professionals of our Service Center are ready to help you. We are available every working day from 8.30 am to 17.00 pm via sc@unie.nl en 0345 851 963.
