Mandatory pension arrangements
In the Netherlands, you have to pay contributions for the basic state pension (general old age pension, AOW) for yourself or you employees. In some situations, you are also obliged to arrange for a supplementary pension for yourself or your employees.Â
Pensions consist of:Â
- a state pension (AOW)
- a supplementary pension arrangement (mandatory in some situations)
- an individual supplementary pension arrangement via private insurance (not mandatory)
Old Age Pension (AOW)
In general, everybody who reaches the state pension age in the Netherlands will receive a basic state pension: the general old age pension (AOW). Everyone who resides or works in the Netherlands builds up this pension automatically over the years. The AOW state pension is a basic income. The amount of your AOW pension depends on the number of years you have been insured under the AOW scheme. It also depends on whether you live with someone or on your own. Do you work and live outside the Netherlands, and do you not pay the contributions? Then you are not covered for this period and you will receive less AOW pension.
The state pension age (AOW age) is gradually changing, and thus the age at which someone will receive AOW depends on their date of birth.
How do you pay for the Old Age Pension (AOW)?
You pay for the basic state pension via the national insurance contributions:
- As an employer you pay the contribution to the Netherlands Tax Administration (Belastingdienst) via the payroll tax.
- As an entrepreneur for income tax, you pay the contribution via your income tax to the Tax Administration.
Supplementary pension
A supplementary pension is an additional payment on top of the state pension (AOW). Offering a supplementary pension scheme is mandatory in the following situations:
- if you are active in an industry in which a sectoral pension fund (Bedrijfstakpensioenfonds, Bpf, in Dutch) is compulsory
- in a number of professions with an occupational pension scheme
If you are an employer you have to inform your employees which pension scheme applies and where they can find information on their pension.
How do you pay for the supplementary pension?
As an employer you pay part of the contribution for the supplementary pension to a pension fund or insurer (for your sector or profession). The employee also pays part of the contribution. Check the Step-by-step plan: Pension schemes for your employees.
As a self-employed professional (zzp’er) you pay your premium to the pension fund or an insurer. Check how you can arrange a supplementary pension if you are an entrepreneur or self-employed professional.
Exemption from participating in a pension fund
Do you prefer not to participate in the (compulsory) pension fund? For example, because you have your own pension scheme? You can request permission for an exemption from the board of the sectoral pension fund. If permission is granted, you can choose a pension scheme for yourself and your employees.
Individual supplementary pension
You can build up a supplementary pension via an individual insurance such as annuities and life insurance policies. Such a pension arrangement is not mandatory and can be used if, for example, you have a pension gap or you want to stop working earlier.
Pension after death
Do you have a partner at the time of your death? In most cases, your partner is entitled to a survivor benefit (nabestaandenpensioen) under the National Survivor Benefits Act (Algemene Nabestaandenwet, Anw). This is subject to certain conditions. If you pass away, your partner can receive a part of your pension rights.
Right to retirement pension information
Pension funds must provide you with sufficient and proper information concerning your pension, so that you know what to expect upon retirement. This information must also clearly show the financial implications of any choices you make or of any changes that may occur in your personal situation. The information is provided by your pension fund through Mijnpensioenoverzicht.nl .