What is an AOW gap?
An AOW gap arises when you have not been insured in the Netherlands for the full 50 years for the AOW. For each year missing, your AOW is reduced by 2%. This can lead to a significantly lower income, especially if you have lived abroad for a long time.
Reasons for an AOW gap
| Reason | Impact |
|---|---|
| Residence abroad | No AOW insurance |
| Work abroad | Usually no AOW accrual |
| Late immigration | Fewer years for accrual |
| Detachment without coverage | Missing accrual years |
How is an AOW gap calculated?
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
Ways to reduce an AOW gap
There are several options to limit an AOW gap:
- Voluntary premium payment: Continue paying AOW premiums during your stay abroad via the SVB
- Retrospective purchase: Pay for missing years afterwards (max. 10 years, expensive)
- Supplementary support: Via the AIO scheme (supplementary income support for the elderly)
Bridging to AOW age
If you stop working earlier than AOW age, these are possible solutions:
- Early retirement: Via your pension scheme (often with lower benefit)
- RVU scheme: Early exit via your employer
- Personal reserves: Use of savings or equity in your home
- IOW benefit: For unemployed persons over 60 years after WW expires
AIO scheme for supplementary income
The AIO (Supplementary Income Provision for the Elderly) helps supplement your income to the minimum if:
- You are entitled to AOW
- Your total income is below the social minimum
- Your assets remain below the permitted limit
Can I pay AOW premiums from abroad?
Yes, you can voluntarily insure yourself via the SVB. This usually needs to be arranged within one year after your departure from the Netherlands.
Is purchasing AOW years financially sensible?
This depends on your age and the number of years you want to purchase. The costs are often high, so have a calculation made by an advisor.
Is AIO automatically granted with a low AOW?
No, you must apply for AIO yourself with the SVB in your region, such as in Westland.
Frequently asked questions about AOW in Westland
How do I find out if I have an AOW gap?
You may have an AOW gap 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. A financial advisor can help with uncertainties.
What does it cost to purchase AOW years?
The costs vary depending on your age and the number of years you purchase. The premium is based on the minimum wage and can be high. Request a specific calculation from the SVB.
Can I prevent an AOW gap upon emigration?
Yes, by voluntarily insuring yourself with the SVB within one year after departure. You then pay premiums to continue your accrual. Contact the SVB in time to arrange this.
How can I apply for AIO in Westland?
You apply for AIO via the SVB by filling out a form. You must demonstrate that your income is below the minimum and that your assets are within the limits. After approval, you receive a monthly supplement.
What are the pros and cons of early retirement?
Early retirement gives you the chance to stop earlier, but often with a lower monthly benefit. Consider your financial situation carefully before making this choice.