More Time for Maturing Annuities

Good news for people whose annuity policy matures and is due to start paying out from 2026 onwards. The statutory period within which you must decide what to do with your released annuity capital has been extended.

Until the end of 2025, you generally had to make your decision no later than the end of the year following the annuity’s maturity date. From 2026 onwards, this deadline is no longer linked to the maturity date itself but to your age. In principle, the decision period now runs until 31 December of the year after you reach your State Pension age (AOW age) plus five years.

From a tax perspective, this provides considerably more time. Nevertheless, it is not advisable to simply leave a matured annuity untouched. Many annuity products pay little or no return after the maturity date. In such cases, waiting could result in a loss of potential investment growth.

It is therefore wise to consider your options in good time. You may choose to purchase an annuity income product, but you can also decide to extend the annuity and allow the capital to continue growing on a tax-deferred basis for several more years.

Please note: if your annuity matured in 2025, the previous rules still apply. In that case, you must make your decision no later than 31 December 2026.

In short, the new regulations provide greater flexibility and more time to make a decision. However, having more time does not necessarily mean that delaying your choice is always the most financially beneficial option.