Many years ago, a friend of mine in the Netherlands had the same job as another guy, earning the same money, my friend being extremely thrifty, the other guy splurging. When they both found themselves out of a job at the same time, my friend got no support from the government as he had savings, while the other guy started getting a very generous allowance.

This goes directly against all that is reasonable. This is directly discouraging financial responsibility. My friend is thrifty just for the sake of it, he knows it's not in his interest. But he gets the short end.

Also it's a bit more, right now you are looking at 36% on 6% or 2.16% per year with a €59k threshold. So a bit over €20k a year on that €1M.