Difference between AOW and private pension insurance in Westland

In Westland, known for its greenhouse construction and agricultural entrepreneurs, the AOW voluntary insurance fundamentally differs from private pension insurances. AOW provides, as a state pension, a lifelong, index-linked benefit without asset testing, ideal for Westland market gardeners without employees' pension. Private products such as annuities build up capital with investment risk and inheritance accumulation. The AOW premium is income-dependent and tax-deductible, private premiums often also within the annual room limit (Income Tax Act 2001, art. 11.1). AOW supplements the basic pension up to 100%, while private options aim for supplementary pension. Taxation: AOW benefits are fully taxable in box 1, private partially. For self-employed Westland glasshouse growers, often without company pension, AOW is crucial; private offers flexibility but no guarantee. Comparison: AOW costs approximately €1,800 per year for €1,200 monthly benefit, private can yield higher returns in favourable markets. Risk: AOW is risk-free, private market-dependent. Choose AOW for an AOW gap due to residence outside the Netherlands, private for extra build-up. Combine both for an optimal pension, especially with the high cost of living in Westland. Consult the Tax Authorities in The Hague for annual room and SVB for AOW check. The Wage Tax Act regulates coordination with local pension funds such as those for the horticulture sector. (218 words)