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 three pillars of the pension
| Pillar | Description | Responsible Party |
|---|---|---|
| First pillar | AOW (basic income) | Government (SVB) |
| Second pillar | Pension via employer | Pension fund or insurer |
| Third pillar | Personal savings | Own initiative (e.g. annuity) |
First pillar: AOW benefit
The General Old Age Act (AOW) forms the basis of your pension and is provided by the government:
- Everyone who reaches AOW age is entitled to it
- Accrual takes place by living in the Netherlands (2% per year)
- The amount depends on your living situation (single or cohabiting)
- You receive a full AOW after 50 years of accrual
Second pillar: Pension via the employer
Many employees build up additional pension through their work:
- The premium is often shared by employer and employee
- The pension is managed by a fund or insurer
- The benefit depends on your salary, length of service and scheme
- With the new Pension Act, this shifts to an individual pension pot
Third pillar: Saving for later yourself
You can build up supplementary pension yourself for extra security:
- Via products such as annuity or bank savings
- Tax benefits: premiums are often deductible
- Ideal for self-employed persons and people without employer pension
Frequently asked questions about pension in Westland
Have I built up sufficient pension?
Check your situation on mijnpensioenoverzicht.nl. Here you will find an overview of your AOW and employer pensions.
Do I build up pension as a self-employed person?
As a self-employed person (zzp’er), you usually have no employer pension. You can save yourself via the third pillar, for example with an annuity.
What does the new Pension Act mean for me?
The new act introduces personal pension capital. This offers more insight, but no fixed benefit. Inquire with your pension fund.
Extra questions about pension
Am I entitled to AOW in Westland?
If you live or work in the Netherlands, you automatically accrue AOW. For each year you reside here between your 15th and AOW age, you receive 2% accrual. Check your status on mijnpensioenoverzicht.nl. Did you live outside the Netherlands? Then your AOW may be lower. The SVB determines your final benefit.
What if I change employers?
Your accrued pension remains in place, but you continue to accrue with your new job. Value transfer to the new fund is possible, but not mandatory. Compare the schemes via your pension administrator or an advisor in Westland.
How much tax do I pay on my pension benefit?
You pay income tax on AOW and employer pension, depending on your total income. For the third pillar, premiums are deductible, but benefits are taxable. Use tools from the Tax Authorities for an indication.
Can I retire earlier?
Yes, but your AOW starts only at the official age. You must arrange income yourself for the period before. Employer pension can sometimes start earlier, but will then be lower. Contact your fund or an advisor in Westland.
What is the difference between a fund and an insurer?
A pension fund manages collective pensions for a sector (such as ABP), while an insurer offers commercial solutions, often for smaller companies. Both are under strict supervision.
What does the new Pension Act entail?
From 2024 to 2028, the transition is made to personal pension capital. This provides more transparency, but also risk of fluctuating benefits. Ask your fund for details.
Can I use my pension for debts or a house?
In principle no, because pension is for your old age. In rare cases, exceptions are possible. Contact an advisor or the Juridisch Loket Westland for assistance.