Lump sum for pensions finalized: implementation as of 1 January 2029, but concerns remain

Publicationdate: 25 June 2026

On 16 June 2026, the Senate adopted the Lump Sum Revision Act (Wet herziening bedrag ineens). This finally makes it possible for participants, upon retirement  ,to withdraw up to 10% of their pension as a one-off lump sum.

After repeated postponements, it has also become clear that further delay is no longer on the table. Minister Vijlbrief confirmed in the Senate that 1 January 2029 is a firm date for entry into force.

With this legislation, the government aims to improve the practicability and communication surrounding the lump sum compared to earlier versions. At the same time, points of attention remain, including the complexity for pensionproviders and the need to guide participants in making their choice.

Although the additional freedom of choice can be viewed positively, the question remains whether implementation, also in this form, is desirable. In particular, the tax aspects, such as the disadvantageous tax rate and the risk of losing certain tax allowances when withdrawing a lump sum, remain important concerns that may significantly affect the outcome for participants.

In short: there is now legal clarity and the legislation will enter into force eight years (!) after the originally intended start date, but the substantive bottlenecks remain as relevant as ever.