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 VI enables you to take part-time retirement after the age of 67.
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 between 90% and 40%.
Once you have taken part-time retirement, you can not increase you part-time working percentage again. You can however decrease your part-time working percentage further, up to 40%. You take full retirement on your official retirement date, usually when you turn 67.
Consequences for your pension
If you retire before the age of 67, 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 67 will be lower. Part-time retirement also has consequences for the level of any partner’s pension.
Fiscal consequences of part-time retirement and employment
If you opt for part-time retirement more than five years before the AOW age 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 (Dutch Tax Authority) 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%. For more information, please check the Dutch Tax Authority website (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. The form 'Application for part-time retirement' is available on this website.
you wish to take part-time retirement
Temporary pension until AOW age
If you take early retirement before your AOW age, as it applies on the retirement date, you may opt for a temporary retirement pension. You can opt for temporary retirement pension in order to bridge the lack of AOW.
Other choices are also available. These choices relate to the moment at which you take full retirement.