Sometimes people choose to continue working after retirement. This not only offers financial benefits but also provides structure to your daily life. Do you want to continue working after retirement? Then consider these important considerations.
Consult with your employer in a timely manner
Many collective bargaining agreements or employment contracts stipulate that your contract ends when you reach the state pension age. Do you want to continue working? Discuss the possibility of a new contract with your employer in a timely manner. If your collective bargaining agreement and/or employment contract do not state anything about automatic termination when you reach the state pension age, your existing contract will generally continue, unless your employer terminates it around the time you reach the state pension age.
Please note special rules
After reaching the AOW retirement age, different employment rules apply:
- Your employer is not required to request preventive consent in the event of dismissal.
- If someone stops working because they reach the state pension age (AOW) and receives a temporary contract again within six months, this does not automatically count as a permanent contract. The special rule (the so-called Ragetlie scheme) that normally converts a temporary contract into a permanent contract does not apply here.
- If the parties enter into a new permanent contract after reaching the state pension age, the employer does not need permission from the UWV (Employee Insurance Agency) or the subdistrict court, but must comply with the other dismissal rules.
- The notice period is only one month.
- The employee is not entitled to a transition payment after reaching the AOW retirement age.
- The employer may offer a maximum of six temporary contracts within a four-year period (instead of three contracts in three years) before a permanent contract is created.
- Most statutory prohibitions on dismissal (for example, the prohibition on dismissal during illness) do not apply.
In addition, you are no longer insured against unemployment and disability.
You can also indicate whether you want to work more or fewer hours, but your employer is not obliged to comply with this.
Pay attention to your rights as an employee
Even after you reach retirement age, you retain certain rights:
- You are entitled to the minimum wage and holiday allowance.
- In case of illness, you will receive pay for a maximum of six weeks.
- Because you pay less in taxes and premiums, you'll have a higher net income. This makes you a financially attractive option for your employer.
Combine work with your pension income
From your state pension age, you often receive two benefits:
- AOW benefit: The basic government pension.
- Supplementary pension: Built up with a pension fund or insurer through your employer(s).
Do you earn a salary in addition to these benefits? Then your benefits will remain unchanged. You can also choose to have your supplementary pension start later, so your monthly supplementary pension benefit will increase over time.
Prevent tax disadvantages
From your state pension age (AOW) onward, you pay less tax and premiums, which is beneficial for your net income. But beware: Do you receive a salary, AOW, and a pension? Then you may be paying too little tax, meaning you'll have to pay extra after filing your tax return.
To avoid surprises, you can complete a provisional assessment and ensure that your payroll tax credit is only applied to one income.
Want to know more?
Do you have any questions? Feel free to contact us; the experienced professionals at our Service Center are ready to assist you. We are available weekdays from 8:30 AM to 5:00 PM at sc@unie.nl and +31 345 851 963.
