Retirement is a time to enjoy and do what you want. For many people, this means traveling, reading and spending time with (grand)children. But what if you like to stay at work? To stay among people, to continue using your brain or to earn a financial bonus. Working during your pension is allowed. You just have to pay attention to your tax return. We have listed what you should be careful of.
Early retirement
If you receive an AOW benefit or old-age pension from employment, you can simply earn extra. Previously, you had to be careful if you retired early, but that is no longer necessary: the rules have been relaxed. As far as the Tax Authorities are concerned, your pension may commence ten years before your state pension date. Most people will not choose to stop working ten years in advance, but less in advance. That is also possible. It is important to gain insight into your pension before you make such a decision: bringing forward your pension will affect your income after your state pension date.
Pay attention to your tax return
If you earn extra, you have more income to declare to the tax authorities. Your tax return concerns all your income together: think of your income from work, but also your state pension and pension. Pay extra attention to the following points:
- Your extra earnings can put you in a higher tax bracket. This means you have to pay more tax.
- From the AOW age you no longer pay AOW contributions, so that you have more net left over from your salary.
- You can only have the payroll tax credit applied at one employer or benefit agency. Our advice: choose the highest income, which is the cheapest.
- Your additional income may affect your right to certain benefits, such as healthcare and housing benefit. The amount can also change if you earn more.
- Do you earn extra as a self-employed entrepreneur? Under certain conditions you are entitled to a self-employed person's deduction. Read more about this on the Tax Authorities website.
- Curious about the tax consequences of your additional earnings during your retirement? Please contact the tax authorities.
Want to know more?
Do you have questions about continuing to work during your retirement? Or are you already working during your retirement and are you encountering problems? Please feel free to contact us. Our legal specialists are happy to help you. We can be reached every working day from 8.30:17.00 am to 0345:851 pm via sc@unie.nl and 963 XNUMX XNUMX.
