A pension is income that you receive when you stop working or have reached a certain age. You can accrue pension through your employer or a personal pension product. If you live in the Netherlands you also build up entitlement to state pension. Upon retiring, you receive pension until your death.
Types of pension
There are 3 types of pension.
If you live or work in the Netherlands you build up AOW pension. This is a basic state pension. You will receive it from the day on which you reach state pension age. It is paid into your bank account by the Social Insurance Bank (SVB).
If you move abroad, you usually stop building up AOW state pension, although there are some exceptions. How much AOW pension you get depends on the country where you live. In some countries you will get a lower AOW pension.
If you are employed in the Netherlands, you are probably building up a workplace pension through your employer. Your employer pays an amount into the pension fund each month. An additional contribution is often withheld from your pay. This is how you automatically set aside money for when you retire. When you retire, you will receive monthly payments, supplementing the basic state pension (AOW).
If you work abroad, whether or not you build up pension depends on what your employer has arranged. Ask your employer about this.
Early retirement means lower pension payments
If you want to retire early, contact your pension provider to ask if you can start receiving your pension earlier. Keep in mind that the monthly pension you receive will be lower, because your accrued pension has to be spread over a longer time.
You can also retire later than the state pension age. In that case you will be building up pension for longer and receive higher monthly payments when you retire.
You can also put money aside for your retirement yourself. This is useful if you are self-employed or if you want to have more money when you retire, for example. Financial service providers, like banks or insurers, offer personal pension products. These supplement the AOW pension and any workplace pension you may be entitled to.
How much pension have I accrued?
Find out online how much pension you have accrued in the Netherlands.
Pension outside the Netherlands
Most countries have a state pension scheme, but the rules and requirements are different in each country.
Find out what things you must take into account and what you need to arrange if you are retiring abroad.
If you have any questions, please do not hesitate to contact us.