Pension Savings Space: Who Qualifies and What You Get
Learn how to use your pension savings space to make tax-deductible contributions and fill gaps in your retirement savings.
This scheme allows you to make extra contributions to a pension account to make up for any gaps in your previous employment or freelance history.
Who it's for
This option is available to anyone who has a gap in their pension buildup. This often happens to people who have had periods of unemployment or those who have worked as freelancers rather than as employees. If you have a 'pensioengat'—a gap in your pension history—you may be eligible to use this space to strengthen your future financial security.
What you get
The primary benefit is the ability to make tax-deductible contributions to a blocked pension account, often referred to as a 'Lijfrente'. By putting money into this type of account, you can reduce the amount of income that is subject to taxation, effectively using your savings space to build a private pension fund.
What it costs you
While there is no direct fee to access this scheme, it does require some administrative effort. You must calculate your 'jaarruimte', which is the specific amount of tax-deductible space you have available for the year. You can determine this amount by using the official calculation tool provided by the tax office.
The catch to know
The most important thing to understand is that these funds are locked. Because the money is being put into a specialized pension account to receive tax benefits, you cannot withdraw it for general use. The funds remain inaccessible until you reach your official retirement age.
How to apply
- Use the official tool from the tax office to calculate your 'jaarruimte'.
- Set up or identify a suitable blocked pension account, such as a 'Lijfrente'.
- Deposit your calculated contribution amount into the account.
- Report the contribution when filing your annual tax return to claim the deduction.