The FOR is gone: what to do with your old-age reserve now

The FOR—the oudedagsreserve (old-age reserve)—was a deduction that let Dutch freelancers set aside money for retirement and get a tax break on it. But it's gone as of 2023, and if you built one up, you now face a tax settlement. This guide explains what happened, what you must do with your existing reserve, and how to convert it into a tax-efficient pension without triggering a huge bill all at once.

What was the FOR and why was it abolished?#

The oudedagsreserve was a reserve you could build up as a freelancer to prepare for retirement. You'd set aside money each year, deduct it from your taxable profit, and the Belastingdienst would defer the tax until you actually used it. It was a way to save for old age while getting a present-day tax advantage.

In 2023, the Dutch government abolished it entirely. New entrepreneurs from 2023 onward cannot open a FOR. The reasoning: the system was seen as outdated and favoured the self-employed over employees. The government wanted to redirect that tax break into broader pension rules that work for everyone.

If you already have a FOR: you must settle it eventually#

Here's the hard part: if you built a FOR before 2023, it doesn't vanish. The money is still yours, but the Belastingdienst considers it a "silent reserve" that must eventually be taxed. You cannot simply leave it alone and ignore it—that's not how Dutch tax law works.

The deadline to fully settle your FOR is 2027. You have until the end of that year to wind it down completely. After 2027, any remaining reserve will be treated as income in that final year, and you'll owe tax on the entire amount at once. That's why acting now—or soon—is better than waiting until the last minute.

Option 1: Convert your FOR into a stakingslijfrente#

The cleanest way to settle a FOR is to convert it into a stakingslijfrente (cessation annuity). Here's how it works:

1. You withdraw or transfer your FOR balance to an insurance company or bank offering lijfrente products.
2. They convert it into a pension plan that pays you out over your retirement years (typically age 65 or 67 onward).
3. You claim a stakingsaftrek (cessation relief) to lower the taxable gain when you close the FOR.
4. The lijfrente premiums themselves are deductible under your jaarruimte (annual pension deduction room), so the conversion is tax-optimized.

The benefit: you defer the full tax bill. Instead of paying it all in one year, you gradually move your reserve into a pension vehicle and claim deductions along the way.

Option 2: Withdraw and pay tax on the lump sum#

You can simply withdraw the entire FOR balance, take it as income, and pay the tax. This is the most straightforward but also the most expensive route:

• The entire balance becomes taxable income in the year you withdraw it.
• You pay income tax at your marginal rate (which for a big lump sum may push you into a higher bracket).
• There's no deduction or relief—the full amount is taxed.

This makes sense only if your FOR balance is small (a few thousand euros) or if you withdraw it across multiple years (spreading the tax hit). For most people, the stakingslijfrente route is better.

How the stakingsaftrek works#

When you settle a FOR by converting it to a pension, you can claim a stakingsaftrek (cessation relief) on the taxable gain:

• Calculate the gain: the value of your FOR minus what you originally set aside for it (your cost base).
• The stakingsaftrek reduces that gain, lowering the tax you owe in the settlement year.
• The amount of relief varies, but it's designed to soften the tax blow when you stop or restructure your business.

Example: Your FOR balance is €50,000, and you originally set aside €30,000. The gain is €20,000. The stakingsaftrek might reduce that gain by a percentage (check with the Belastingdienst for the exact amount), so you only pay tax on, say, €10,000 instead of €20,000.

Jaarruimte: how to deduct the new pension premiums#

Once you've converted your FOR into a lijfrente, the insurance or bank will charge you premiums (usually annual or monthly). These premiums are deductible under your jaarruimte (annual pension deduction allowance).

Since 2023, the jaarruimte has expanded. You can deduct around 30% of your profit (or a minimum of roughly €1,800) toward pension savings. This means:

• Your stakingslijfrente premiums reduce your taxable profit in the year you pay them.
• Over several years, you can phase out a large FOR balance without a single massive tax bill.
• The deduction stacks with other entrepreneur deductions (zelfstandigenaftrek, etc.).

Read our full guide on jaarruimte and lijfrente for the exact rules and how to maximize your room.

Worked example: converting a €40,000 FOR#

Let's say you have a €40,000 FOR balance and you want to convert it over three years:

Year 1 (2024):

• You withdraw €15,000 and buy a stakingslijfrente from an insurer.
• The gain on that portion (assuming it's €5,000) gets a stakingsaftrek, bringing the taxable gain down to €2,500.
• You claim your jaarruimte deduction of around €1,800 for the first year's premiums.
• Net taxable income: ~€700.

Year 2 (2025):

• You withdraw another €15,000 and buy more lijfrente.
• Again, the gain gets relief, and you claim your jaarruimte.
• Net taxable income: ~€700.

Year 3 (2026):

• Final €10,000 withdrawal, same process.
• By year end, your FOR is gone, and you've converted it into a pension paying you from age 65 onward.
• Total tax over three years: maybe €2,500–€4,000 (way less than paying it all in one year).

This is why planning and spreading the conversion beats leaving it until 2027.

If you've already wound down your FOR: confirmation#

If you've already settled your FOR before now, make sure you have documentation from your insurer or bank confirming the conversion and the dates. The Belastingdienst may ask for proof if they see a big income jump. Keep:

• The original FOR balance sheet and growth records.
• The conversion agreement and lijfrente policy documents.
• Proof of premium payments into the new pension vehicle.

These records will help you explain to the tax office why a large income item appeared (and disappeared) in a particular year.

Frequently asked questions#

The FOR is no longer a new option, but if you have an existing reserve, settling it wisely can save you thousands in taxes. The key is to start now and spread the conversion over a few years using a stakingslijfrente and your jaarruimte deduction. Do not wait until 2027—by then your options narrow and your tax bill looms much larger.

For expert help with your specific FOR situation, consult a belastingadviseur or use ZZP Belasting to track your settlement plan and stay on schedule toward that 2027 deadline.

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