Early Retirement Pension The Hague: local tax consequences and legal aid
Early retirement pension The Hague seems tempting, but brings serious tax disadvantages. You lose employment allowance (€5,052 in 2024), pay revision interest up to 20%, get an AOW gap of €1,400 net/month and permanent reduction. In The Hague, District Court The Hague (Prins Clauslaan 60) and Legal Aid Office (Lutherse Burgwal 10) assist with your pension decision.
Main tax consequences early retirement pension The Hague
With early retirement pension The Hague your tax position changes drastically. Key points:
- Increased tax burden: No employment allowance anymore (€5,052, 2024), higher income tax on pension
- Revision interest: Up to 20% on stamped-off capital to the Tax Authorities
- AOW gap The Hague: €1,400 net/month less until AOW age (67 years 2024)
- Lifelong pension reduction: 5-8% per early year
- No further accrual: Lower final pension due to shorter term
On average 20-35% income decrease. For personal advice: District Court The Hague, Prins Clauslaan 60 or Legal Aid Office The Hague, Lutherse Burgwal 10.
Tax burden with early pension: The Hague figures 2024
Tax disadvantage The Hague: Employees benefit from general tax credit (€3,362) + employment allowance (€5,052 max). Pension income completely misses employment allowance.
2024 Rates
- Bracket 1 (up to €75,624): 36.97%
- Bracket 2 (above €75,624): 49.50%
Modal income €40,000: employee pays 15-20% effective, retiree 25-30%. Difference: €4,000-€6,000 net less per year. Local calculation? Legal Aid Office The Hague helps free of charge.
Revision interest pension stamping off The Hague
Revision interest The Hague: One-time tax (max 20%) upon stamping off accrued pension. Tax advantage in accrual phase is corrected.
Calculation
Depending on early retirement years, capital and fund actuarial. Example The Hague: €400,000 capital, 3 years early, €100,000 stamping off = €20,000 revision interest.
Ask your pension fund and Tax Authorities The Hague for exact simulation. No stamping off? Then no revision interest.
AOW gap The Hague: large income gap
AOW gap The Hague: Between early pension and AOW (67 years 2024) no AOW benefit. Monthly approximately €1,400 net missed (2024).
For 3 years early: 3 x 12 x €1,400 = €50,400 less. District Court The Hague handles AOW disputes; start at Legal Aid Office.
Local legal aid The Hague early retirement pension
- District Court The Hague: Prins Clauslaan 60, 2595 AH The Hague. Pension procedures and disputes.
- Legal Aid Office The Hague: Lutherse Burgwal 10, 2512 EA The Hague. Free initial advice on pension + tax matters.
Tip The Hague: Make calculation via pension fund + SVB AOW trial calculation. Consult with local experts before decision.
Calculation example The Hague 3 years early retirement
| Component | Normal pension | Early | Difference/year |
|---|---|---|---|
| Pension gross | €2,500 | €2,100 | -€400 |
| Employment allowance | €5,052 | €0 | -€5,052 |
| AOW (after 67) | €1,400 | €0 (3yr) | -€50,400 |
| Revision interest | €0 | €20,000 | -€20,000 |
Total first years: 25-35% lower net