RVU threshold exemption combined with early retirement often more attractive than expected

Publication date: 27 August 2026

The Dutch Early Retirement Scheme (RVU) threshold exemption is often perceived as a relatively modest arrangement. With a maximum benefit of €2,357 gross per month for up to 36 months, the fiscally permitted amount is indeed limited. However, the financial outcome can be surprisingly attractive when employees combine the RVU benefit with early retirement pension benefits.

The strength lies in the combination. An employee who leaves employment three years before reaching State Pension age (AOW age) can receive the RVU benefit while simultaneously drawing their retirement pension early. As a result, income during the final three years before AOW age can be significantly higher than many employees expect.

Income during the final three years before AOW age

Consider an employee who would receive an annual retirement pension of €25,000 gross from AOW age onwards. If the pension is brought forward by three years, the lifelong pension may be reduced to approximately €21,000 gross per year. The employee would then receive:

• RVU benefit: €28,284 gross per year;
• early retirement pension: €21,000 gross per year.

Total annual income: approximately €49,000 gross.

Income from AOW age onwards

Once the employee reaches AOW age, income consists of:

• State Pension (AOW): approximately €20,000 gross per year;
• Early retirement pension: €21,000 gross per year

Total annual income: approximately €41,000 gross.

This means that income during the three-year bridging period exceeds the income received after reaching AOW age. In practice, this difference may narrow over time. AOW benefits are generally adjusted periodically, and a variable pension could increase through positive investment returns.

Fine-tuning the income profile

Employees may also opt for a pension structure that provides a lower benefit before AOW age and a higher benefit afterwards. Such flexibility can help align income levels before and after reaching AOW age, creating a smoother transition into retirement.

The employer's role

Individual pension advice remains outside the employer's responsibility. However, employers can play an important role in helping employees understand the opportunities created by combining the RVU arrangement with early retirement benefits. Practical tools such as illustrative examples, Q&A documents and general information sessions can help employees make well-informed decisions and gain a better understanding of their retirement options.