Physically demanding occupation? Incapacity for work can create an income gap

As an entrepreneur with a physically demanding occupation, you cannot fully rely on your disability insurance. This often only pays out until your 60th birthday. This can create an income gap until your retirement. What can you do about this?

If you do physically demanding work or are often stressed, you run a greater risk of incapacity for work. This is why insurers often use 60 as the final age for occupations such as bricklayer, road worker, mover and care worker.

If you have such an insurance and you can no longer work due to illness or an accident, the insurer will not pay out any more from the age of 60. This leaves you with an income gap until retirement.

Prepare for income gap

Additional insurance against incapacity for work that runs until retirement is very expensive. But you can prepare for an income gap in other ways. For example, you may be able to make it from age 60 to retirement with savings. Estimate how much money you will need for that. Put money aside each month and save that amount. Read more about disability insurance for self-employed professionals.

You can also change jobs if you do not think you can keep up the heavy work until retirement. With less heavy work, you may be able to do so. For example, get retrained: take an education, training or course.

Income gap and benefits

Have you made no arrangements? Then there is a risk that you will first have to use up your equity capital (private savings) before you are entitled to any benefits. Even if your partner has an income, you often cannot claim benefits.

If you have to end your business due to incapacity for work and have an income gap, you may be entitled to IOAZ benefit (Wet inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen, IOAZ). Once your retirement starts, this benefit stops. You apply for the IOAZ benefit before you end your business.

Sometimes, as an entrepreneur with an income gap, you can also fall back on the Unemployment Insurance Act (WW). For example, if you were already receiving unemployment benefit before becoming self-employed. Or if you were still partially employed.

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KVK Insurance Check

You want to cover yourself against the risks you face as an entrepreneur. You can do that through insurance. Check which insurances you need (in Dutch).