Early Retirement Costs Highlighted in Belgium and the Netherlands

Financial experts warn that stopping work before the statutory retirement age can significantly reduce lifetime pension benefits. In the Netherlands, an actuarial reduction of roughly 7 % per year is applied, meaning a three‑year early exit can cut pension income by about one‑fifth. Additional fiscal charges include a RVU tax that will rise from 57.7 % in 2026 to 65 % by 2028, and the loss of tax credits such as the labour‑income allowance once employment ends.

In Belgium, Sofie De Wit advises a more gradual approach, beginning with the creation of an emergency fund covering three to six months of expenses. She stresses that a solid financial buffer helps avoid disrupting long‑term pension plans when unexpected costs arise, allowing individuals to start systematic pension planning without compromising their current cash flow.