Netherlands budget plans: social security cuts scrapped and pension updates

Leaked documents for Prinsjesdag 2026 indicate that the Dutch government has scrapped planned multi-billion euro cuts to social security, instead shifting part of the financial burden toward higher income earners. Key policy updates include the decision to cancel the accelerated increase of the AOW retirement age.

Regarding taxation, plans to levy tax on ‘paper profits’ (unrealized capital gains) in Box 3 have been postponed due to political resistance. For 2026 and 2027, the current system of taxing a fictitious return will remain, with the rate for investments set at 6.00% for 2026.

For self-employed individuals (ZZP’ers), tax benefits will continue to decrease, with the ‘zelfstandigenaftrek’ dropping to 900 euros in 2027 and the ‘startersaftrek’ likely being abolished by 2028. Additionally, the maximum income for pension accrual will be frozen at 137,800 euros (the 2026 level) through 2032 without annual indexation.

The shifting political discourse in the Throne Speech reflects a move from themes of ‘self-reliance’ toward ‘existential security’ and ‘protection,’ highlighting the growing gap in financial buffers among different households.