No more FOR, what can you do?

As of 1 January 2023, entrepreneurs can no longer build up a fiscal retirement reserve (in Dutch: 'fiscale oudedagsreserve', FOR). If you have already set aside money in a retirement reserve, you can leave the money where it is, or transfer it to another pension product. If you want to start building up additional pension, there are several options. Consider how to build up a pension, because you may not be able to live on the state pension AOW alone.

What is the fiscal retirement reserve (FOR)?

The fiscal retirement reserve FOR applies to entrepreneurs who pay income tax (as opposed to corporate income tax, or 'vennootschapsbelasting'). Owners of an 'eenmanszaak' (sole proprietorship), 'vof' (general partnership), 'maatschap' (professional partnership), or 'cv' (limited partnership) pay income tax. Around a third of all entrepreneurs in these categories make use of the FOR. 

Even though it was called a retirement reserve, the FOR was not a pension. If you save for your pension, you set money aside for after your retirement. The FOR is actually no more than a tax deferral for part of your company profit. You could set aside this untaxed part of your profit in a blocked bank account, or purchase an annuity insurance. But you did not have to. Many entrepreneurs ended up using the money in their business.

This is what changed

As of 1 January 2023, you can no longer set aside money using the FOR. If you have already accrued a retirement reserve, you can settle it based on the old rules. 

What can you do with your existing FOR

You can leave the accrued amount in place. It does not replace a pension. One option is to start saving for your pension in a bank account, or buying an annuity. The amount you pay into your annuity or pension savings account is deducted from your FOR. This amount then counts towards your profits, but the amount paid into your annuity or pension savings account is deductible for tax. This means you do not have to pay tax over this money at the time that you transfer it. Once you start using the money, after your retirement, tax will be levied on your annuity and bank savings payments.

You can opt to turn your FOR into an annuity or savings account up until the moment you end your business. If you do, you need the money in cash. Do you have money left on your FOR balance when you end your business? In that case, the FOR amount will be added to your profit of that year, and you will have to pay tax over it.

Types of pension products

As a business owner, you can build up a pension to complement your state pension (AOW) in several ways. Or, if you are already enrolled in a compulsory pension fund, extra pension. You can save money yourself, invest, open a bank savings account, or buy a pension product from an insurer or other supplier.

Get help from an independent financial adviser (in Dutch) or pension adviser (in Dutch), if you are not sure what to do. Or compare products and savings plans to find out what the return on your investment will be.

Want to know more about building up a pension?

Read more about pensions for business owners in the KVK Book of Finance, chapter 6.6. Do you want to know how much pension you have accrued already? You can check this on