Unused annual pension contribution allowance? That does not necessarily mean you should use it

For business owners, building up supplementary pension provision through an annuity product can be tax-efficient. The available options have been expanded considerably in recent years. In 2026, you may also be able to make use of unused annual pension contribution allowance from the preceding ten years.

You can calculate the amount of tax-relieved contribution allowance available to you using your income and pension details and the calculation tool provided by the Dutch Tax and Customs Administration.

However, the key question is whether it is actually advisable to use that allowance.

A contribution to an annuity product may provide tax relief now, but the funds are then earmarked for retirement and are no longer freely available. This is a particularly important consideration for business owners.

That is why my advice looks beyond the tax-relieved contribution allowance alone. What level of income would you like in retirement? What pension arrangements and assets do you already have? How much capital is held privately and how much is held in the business or private limited company (BV)? And what other plans do you have?

Only once this overall picture is clear can it be determined whether an additional pension contribution is appropriate and, if so, what amount would be prudent.

If you want to deduct a contribution in the 2026 tax year, it must be paid before 1 January 2027.