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Life-course savings scheme expires in 2021

A few years ago, as an employee in the Netherlands, you could save a credit to take unpaid leave or to stop working earlier. This so-called life-course savings scheme was abolished in 2012: it was no longer possible to save from that moment, but an existing balance could remain until the end of the transitional scheme. It will expire on November 1, 2021. Do you still have credit? We will briefly explain what you can do with it.

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You can still do this in 2021

Life-course credit that you have not yet withdrawn on 1 November 2021 will be paid out at once through your employer. This adds to your wages, so you pay a lot of tax on this. That is why it may be fiscally more favorable to use the balance according to your own needs for which it is intended: working less. You can compensate for the loss of income by paying out your savings. You can also investigate whether it is possible to add your life-course credit to your pension scheme.
Will the credit be paid out and will this give you a higher income? Then it is good to see whether it is interesting for you to request averaging of incomes from the tax authorities.

The time to use your credit like this is running out. Whether you want unpaid leave or prefer to retire early, it is better to discuss it with your employer as early as possible. The sooner you schedule your free time, the greater the chance that this will succeed.

What is a life-course savings scheme?

Until 31 December 2012, you as an employee could make use of the life-course savings scheme. You could save part of your gross salary and have it paid out later, for example for unpaid leave or early retirement. The scheme has now been formally abolished. You are only eligible for the scheme if you had a savings balance of € 31 or more on 2011 December 3.000. If you had less at that time, it was already paid out in 2013.

State pension age in 2021?

You can use the life-course savings scheme until you have reached the state pension age. Will that happen between now and November 1, 2021? Then it can happen that the credit is released earlier in one go.

Want to know more?

If you have any questions about your life-course credit or this article, please feel free to contact our Service Center. We are available every working day from 8.00:18.00 am to XNUMX:XNUMX pm via sc@unie.nl and 0345 851 963.