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Pension matters: timing the date? Not necessary

I want to continue working until I reach retirement age. I will be 67 in 2026, just the same year that the new pension system will also come into effect. Is it better for my income to stop just before?

The answer is simple: it doesn't matter. Everyone will transfer to the new scheme from 1 January 2026, whether you are still working or have already retired.

All pension rights are converted on that date into a pension asset of equal value and then into a pension benefit for pensioners. In principle, the pension therefore remains the same as the old pension.

Pension Affairs is an article from the Education magazine of April 2023. Want to stay informed of everything that is happening in education? Join the AOb! And receive the Education magazine ten times a year.


The condition is that the funding ratio of the pension fund is at least 100 percent at the time of conversion. This means that the ABP pension fund – to which teaching staff is affiliated – has enough cash to pay for pensions now and in the future. If the coverage ratio is lower, ABP must immediately decide how to distribute the pain. Does everyone lose out or are certain groups kept out of the wind? That is not yet clear. In such a situation, the benefit could therefore be lower. At the moment, the coverage ratio is in any case far above 100 percent.


However, pension income may fluctuate more in the new system. From now on, pension funds will have to maintain fewer reserves, which means that the investment profit can be distributed more quickly. For retirees, this means a higher pension. Conversely, losses on the stock market can also lead to a temporary lower pension. Any setbacks will be cushioned. They may be spread over several years. In addition, there will be a solidarity reserve, partly to prevent discounts. On average, according to the calculations, you are better off.

In principle, the pension remains the same as the old pension

Does it make a difference whether you have just retired or have been retired for some time? This is not expected to make any difference to the investment policy. This was different in the first plans for the new law. The idea then was that after retirement the investment risk would be gradually reduced with age. The young pensioner would then achieve different returns than the older ones and the annual increase (indexation) of the benefit could therefore differ. That is difficult to explain. After the discussion of the new pension law in the House of Representatives, it was therefore decided that the pension fund may also treat its retired participants as one group, with one investment policy and therefore one indexation. The expectation is that the large pension funds, in consultation with employers and trade unions, will opt for this option.

Special Arrangements

Does nothing change then? Yes, I do. Some special schemes will be abolished when the new system comes into effect, such as the 'completion of concurrent years of service' or the single person's pension. How this will be compensated is not yet certain. The ABP will probably make a general calculation. Some groups benefit from this, while other groups may lose out. But it's not about large amounts.

However complex the details of the new pension system may be, the answer to your question remains simple. If you want to time your retirement, you do not have to take into account the commencement date of the new scheme.

What's changing again?

From 1 January 2026, the new pension scheme at ABP will take effect: 

  • From now on you will receive your pension benefit from your personal pension assets
  • This payment will move more closely with the return achieved on the investments
  • Setbacks are cushioned by spreading and a solidarity reserve
  • You benefit more from windfalls on the stock market than before

Is it actually happening?

It does look like that. The House of Representatives approved the new Future Pensions Act at the end of last year and it is expected that the old Senate will discuss it in May. It is true that the Provincial Council elections have led to different political relations, but the parties that voted for the pension agreement still have a large majority in the new Senate.

And then?

As soon as the calculation rules of De Nederlandsche Bank (DNB) are known next summer, ABP will calculate the choices made. If employers and trade unions agree with the draft of the new pension contract, they will submit it to the pensioners' associations and then to all participants. If everyone says yes, the transition plan will go to DNB, which must put its stamp on it by the end of 2024. The ABP then has one more year for the administrative processes.

Also read: AOb is aiming for a new pension plan for the summer

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