Have you ever considered retiring before you reach NN CDC Pensioenfonds’ standard retirement age of 67? You can retire up to seven years before that age, in other words anytime after you've turned 60. However, there are some important matters to consider before you make this irreversible decision. And have you considered part-time pension?

Do you ever think about the possibilities and consequences of early retirement or part-time pension as part of your financial planning? This article sets out some important matters to consider.

Retiring from the age of 60
NN CDC Pensioenfonds’ standard retirement age is 67, but starting from the year you turn 60 you can opt for early retirement. It is important for you to realise that your income will be lower if you opt for this, because:

• You accrue less pension because you no longer work
• Your pension accrual will need to be paid out over a longer period of time
• You will not yet be receiving a pension from the Dutch state (AOW)

The Pension Planner will help you make relevant calculations and weigh different scenarios. For example, you could opt for early retirement combined with other pension options, such as higher pension benefits during the first years of your retirement.

Part-time pension as an alternative
If early retirement is not feasible for you, you could consider part-time pension. The part-time pension option is offered on a 25%, 50% or 75% basis. It means you would be using a smaller portion of your pension savings and at the same time continue to build up pension for the days that you are still at work. 

What to do next
Have you checked the Pension Planner and decided to opt for early retirement? If so, you must report your decision to your employer and to NN CDC Pensioenfonds at least four months in advance. Go to ‘My Pension’ to make the necessary arrangements or download the form here.