The pension system in the Netherlands is built on three important pillars: the AOW, the pension via the employer and the personal pension provision. These pillars together ensure financial security after retirement.
The structure of the pension system
| Pillar | Description | Responsible Party |
|---|---|---|
| 1st pillar | AOW (basic income) | Government (SVB) |
| 2nd pillar | Pension via work | Pension fund or insurer |
| 3rd pillar | Personal savings | Own initiative (e.g. annuity) |
First pillar: AOW benefit
The AOW forms the foundation of the pension and is provided by the government:
- Available from AOW age
- Accrual through residence in the Netherlands (2% per year)
- Amount dependent on living situation (single or with partner)
- Maximum AOW after 50 years of residence in the Netherlands
Second pillar: pension via the employer
Many Dutch people save for their pension through their work:
- Premiums shared by employer and employee
- Managed by a fund or insurance company
- Benefit amount based on income, years worked and scheme
- With the new Pension Act, the focus shifts to individual pension capital
Third pillar: saving for later yourself
Extra pension can be built up on your own initiative:
- Via products such as annuity or bank savings
- Tax benefits through deductible contributions
- Ideal for self-employed persons and people without an employer scheme
Frequently asked questions about pension
Is my pension sufficient?
Check your accrual via mijnpensioenoverzicht.nl. Here you will find an overview of your AOW and work-related pensions.
Do I get a pension as a self-employed person?
As a self-employed person, you often have no employer scheme. You can save yourself via the third pillar, such as with an annuity.
What does the new Pension Act mean for me?
With the new act, you get more insight into your own pension pot, but a fixed benefit is no longer guaranteed. This offers flexibility, but also risks.
Additional questions and answers
Am I entitled to AOW?
Everyone who lives or works in the Netherlands automatically accrues AOW. For each year you reside here between your 15th and AOW age, you get 2% accrual. Check your status on mijnpensioenoverzicht.nl. Periods of residence abroad may affect the amount. The SVB ultimately determines your benefit.
What if I change employers?
Your accrued pension remains, but you save further via the scheme of your new job. Value transfer to the new fund is possible, but not mandatory. Compare the schemes and any costs with help from your pension administrator or an advisor.
What taxes apply to pension?
Income tax is payable on AOW and employer pension, depending on your total income. For the third pillar, contributions are deductible, but benefits are taxed later. Use tools from the Tax Authorities for an indication and take discounts into account.
Can I retire earlier?
That is possible, but your AOW starts only at the set age. Until then, you must arrange your own income. An employer pension can sometimes start earlier, but will then be lower. Consult your fund about options and get advice on financial planning.
What is the difference between a fund and an insurer?
A pension fund manages collective schemes for sectors or companies (such as ABP). An insurer often offers individual solutions, usually for smaller organisations. Both are strictly supervised, but funds are collective and insurers more tailored.
What about the new Pension Act?
The act introduces personal pension capital with more transparency, but without a fixed benefit. The transition runs from 2024 to 2028. Your fund or employer will keep you informed. This may involve risks due to fluctuations in benefits.
Can I use pension for debts or mortgage?
Usually not, because pension is intended for later. In exceptional situations, an exception may apply. Contact your fund or an advisor for more information.
Local information for Rijswijk:
For legal questions about pension, you can go to the Juridisch Loket Rijswijk. For cases that go to court, Rijswijk falls under the Rechtbank Den Haag.