Partial retirement
You may prefer to reduce your work gradually instead of taking retirement from one day to the next. One way of doing this is to take partial retirement. In consultation with your employer, you may take part-time retirement from the age of 55. The pension scheme established in Regulations V enables you to take part-time retirement after the age of 65. How does this work?
If you take part-time retirement, you remain in the service of Shell, but you will reduce your working hours one or more years before taking full retirement. You will then be working part-time. Your income from employment will be lower because you have reduced your working hours. You can offset this income loss by having part of your pension paid out prior to full retirement; you then take part-time retirement. The precondition for this is that you continue to work 80%, 60% or 50% of your original working hours. You then take full retirement on your official retirement date, usually when you turn 65. Consequences for your pension
If you retire before the age of 65, your annual pension income will be lower. This also applies in the case of part-time retirement. You accrue pension entitlements in proportion to the period that you work part-time. So if you opt for part-time retirement, your retirement pension from the age of 65 will be lower. Part-time retirement also has consequences for the level of any partner’s pension. |
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Fiscal consequences of part-time retirement and employment
If you opt for part-time retirement before you reach age 65 and you intend to take up employment for the ‘freed working time’ thereafter, the combination of receiving pension income and other income from employment or other economic activity may have fiscal consequences. In that case the Belastingdienst (Inland Revenue) can declare the pension arrangement as non-approved and levy tax on the ‘economic value’ of your entire pension entitlement plus a potential interest surcharge of 20%. The Pension Fund recommends that you ask advice on this matter from the Inland Revenue or a tax consultant. Please read the Inland Revenue point of view here (available in Dutch only). Applying for part-time retirement
Before taking part-time retirement, you talk to your employer to investigate the possibilities. You may then decide to submit an application for part-time retirement. A special form is available on this website. Temporary pension You can opt for a temporary pension which may be paid on top of your part-time pension until you turn 65. However, under fiscal legislation, a temporary pension may not exceed the AOW for a married couple. If case of part-time retirement, the maximum for the temporary pension will be in proportion to the part-time retirement percentage. Other choices
Other choices are also available. These choices relate to the moment at which you take full retirement. |
