Are you allowed to continue working after retirement?
By continuing to work alongside your pension, you may hope to earn an extra nest egg. You may also find it important to make social contact and contribute to society. But now the question is whether you are even allowed to continue working after retirement? The answer to that is: yes, that is allowed. You will then retain your AOW and self-accrued pension. However, continuing to work after retirement, or returning to work a few days a week, may have other financial consequences.
Ask for advice from the tax office/advisor
Before you start working or starting a new job: seek advice from a tax agency or advisor. This person will look at your financial situation with you and calculate for you what tax rate you are currently in and what continuing work or a new job will have financial consequences. After all, your income will then increase. And those who earn more also pay more taxes. Make sure you do not earn more than the income limit of your current tax rate.
If it turns out that you have to pay a higher tax rate, more tax will be levied and you will probably have a lot less net income at the bottom line. In the Meldpunt broadcast of November 10, 2023, it appears that several people earned as much as 1 to 5 euros net per hour after tax by the tax authorities through their extra income. Continuing to work after retirement is certainly not always worthwhile.
Take surcharges into account!
Do you receive benefits and are you dependent on them? Then take extra account of the income limits. If your income is above this, you hand in the allowances again and you will also have little or nothing left over. In fact, you may have to give up more money than you get.
Report your new income immediately to the Tax Authorities
Are you going to continue working or start a new job? Then immediately report your new income to the Tax Authorities before you start. This way you will not be faced with any surprises and you will not receive a huge additional tax afterwards.
Do you want to continue working after retirement with your current employer? Please take this into account
Do you want to continue working for your employer where you work for your pension? Make arrangements about this in time with your employer. So not only on the day you reach retirement age. You will be officially dismissed on that day. After all, retirement is one of the easiest ways to say goodbye to employees. If you discuss with your employer in time that you want to stay, agreements can be made to make this possible.
You can make these agreements individually with the company or with an employment mediator. This person will guide you through the procedures prior to continuing to work after your retirement.
Starting a new job? This can help you
Do you want to start a new job, for example after a year of retirement? Then consider contacting a special employment agency to help you with this. These agencies take into account the financial arrangements involved and think along with you about your personal situation.
Can I work during my early retirement?