The government has again deferred the introduction of the lump sum payment. This new pension choice will now take effect on 1 January 2025 at the earliest. Even that date is not yet certain, as both the Senate and the House of Representatives have yet to approve the bill. 

What is lump sum payment? 

With the lump sum option you can receive up to 10% of your accrued pension in one lump sum when you retire. Opting for a lump sum does however reduce the monthly pension you receive thereafter. This may also affect benefits you receive or your tax return. 

When will there be more clarity on this pension choice?

The House of Representatives will debate the lump sum early next year. If they approve this bill, it will go to the Senate. Only if they also agree will the possibility of a lump sum be finalised. The government believes that 1 January 2025 is a realistic target, but indicates that further delays are also possible. We will let you know as soon as this pension choice is made clearer.