What is an AOW gap?
An AOW gap occurs when you have not been fully insured in the Netherlands for the AOW for 50 years. For each year missing, your AOW benefit is reduced by 2%. This can lead to a significant loss of income, especially if you have lived abroad for a long time.
Reasons for an AOW gap
| Reason | Effect |
|---|---|
| Residence abroad | No AOW insurance |
| Work abroad | Usually no AOW accrual |
| Late immigration | Fewer years of accrual |
| Secondment without coverage | Accrual interruption |
How do you calculate an AOW gap?
Practical example
Suppose you have lived and worked abroad for 12 years:
- Accrual: 38 years instead of 50 years
- Reduction: 12 x 2% = 24%
- AOW benefit: 76% of the full amount
Reducing an AOW gap
There are ways to limit an AOW gap:
- Voluntary premium payment: Continue paying AOW premiums during your stay abroad
- Retrospective purchase: Catch up years (maximum 10 years, expensive)
- Additional support: Via the AIO (supplementary income provision for the elderly)
Bridging to AOW age
If you stop working before your AOW age, there are a few options:
- Early pension: Via your pension scheme (with lower benefit)
- RVU scheme: Early retirement via your employer
- Personal assets: Use of savings or home equity
- IOW benefit: For unemployed persons after age 60 upon expiry of unemployment benefits
AIO support
The AIO (Supplementary Income Provision for the Elderly) helps supplement your income to the minimum if:
- You are entitled to AOW
- Your income is below the social minimum
- Your assets remain below the set limit
Can I pay AOW premiums from abroad?
Yes, via the SVB you can voluntarily insure yourself. This usually needs to be arranged within one year after departure.
Is it worthwhile to purchase AOW years?
This depends on your situation, such as age and the number of years to purchase. The costs are high, so have a calculation made.
Is AIO automatically granted for low AOW?
No, you must submit an application yourself to the SVB.
Frequently asked questions about AOW in Rijswijk
How do I find out if I have an AOW gap?
An AOW gap arises if you have not been insured in the Netherlands for 50 years. Check your accrual via MijnSVB.nl or request an overview from the SVB. Each missed year means 2% less benefit. Contact an advisor or the SVB if unsure.
What does it cost to purchase AOW years?
The costs vary depending on your age and the number of years. The premium is calculated based on the minimum wage and can be substantial. Request a quote from the SVB for an exact calculation.
How do I prevent an AOW gap upon emigration?
By voluntarily insuring yourself with the SVB within one year after departure, you can continue your AOW accrual. You then pay premiums. Contact the SVB in time to arrange this.
How do I apply for AIO in Rijswijk?
You can apply for AIO via the SVB by filling out a form. Prove that your income is too low and your assets are below the limit. After approval, you receive a monthly supplement.
What are the pros and cons of early retirement?
Early retirement gives freedom to stop earlier, but your monthly benefit is often lower. Carefully consider your financial situation before making this choice.
Help in Rijswijk
For advice on AOW and bridging arrangements, you can go to the Juridisch Loket Rijswijk. In addition, the District Court of The Hague (district) handles any disputes regarding AOW or benefits in this region.