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The life-course savings scheme is now really coming to an end. How will this affect you?

The transitional law?

Until 2012, employees had the option to save for a life-course benefit. With the abolition of the life-course savings scheme, it has been determined that employees with a life-course entitlement of more than € 3,000 (on 31 December 2011) can make use of transitional law. This transitional right ends on December 31, 2021.


What are the consequences?

This means that if the life-course savings scheme has not been paid out as wages before 1 January 2022, the value of the life-course savings scheme will be taxed. This transitional law runs into practical problems, as a result of which the transitional law is amended as follows:

  • The institution that carries out the life-course savings scheme becomes liable for payroll tax at the notional moment of benefit (the moment at which it is assumed that the remaining life course is paid out).
  • The fictional moment of enjoyment is brought forward. If the life course was not taken into account as wages before 1 November 2021, the fictitious enjoyment moment is 1 November 2021.
  • The institution does not take tax credits into account. These can be realized by the employee in the income tax return. The life-course leave discount is one of these.