Retirement in the Netherlands – what you should know when working here

A practical guide to AOW, employee pension funds, agency work and checking accrued pension rights in the Netherlands.

Retirement may seem like a distant topic, but it often comes up in conversations with clients. People who work in the Netherlands want to know whether their years abroad count, whether rights are lost after leaving the Netherlands and where their pension data can be checked.

The Dutch pension system can seem complicated, but the basic principles are relatively clear. The key is to understand the difference between state pension AOW and employee pension accrued through work.

Good to knowAOW rights are built up gradually. For each full year of insurance in the Netherlands, you accrue 2% of the full state pension.

How does the Dutch pension system work?

In the Netherlands, pensions are often described in three parts: state pension AOW, employee pension through a pension fund and private savings. For most employees, AOW and the pension fund connected to work are the most relevant parts.

What is AOW?

AOW, or Algemene Ouderdomswet, is the Dutch state pension. It does not depend on how much you earned. The important factor is the period during which you were insured under the Dutch social security system.

The principle is simple: each full insured year gives 2% of the full AOW pension. A full AOW is built up over 50 insured years.

10 insured years = 20% of full AOW,
20 insured years = 40% of full AOW,
30 insured years = 60% of full AOW,
50 insured years = 100% of full AOW.

What is employee pension?

In addition to AOW, many employees also build up pension through their employer. Contributions are paid into a pension fund, usually by both employer and employee.

The amount depends on salary, length of employment, contributions and the rules of the specific pension fund.

Common mistakeSome clients think that work through an employment agency does not count towards pension. This is not always true. Agency work may also build pension rights if the correct contributions were paid.

Does agency work count towards pension?

Yes, in many cases agency work is relevant. It is important whether the employee was properly registered and whether contributions were paid according to the applicable rules.

Keep documents such as employment contracts, payslips, Jaaropgaaf and correspondence from pension funds. They may be useful later.

Are Dutch pension rights lost after leaving the Netherlands?

No. Leaving the Netherlands does not automatically mean losing pension rights accrued in the Netherlands. If the rights were properly registered, they remain in the system and can be paid out after reaching retirement age.

Where can you check pension rights?

The easiest place to check pension information is MijnPensioenoverzicht.nl. After logging in, you can see information about AOW and employee pensions accrued with different employers.

Usually, DigiD is needed to log in. For AOW specifically, you can also use Mijn SVB.

Practical tipCheck your pension data at least once a year. It is easier to correct missing or incorrect information early than shortly before retirement.

What should you pay attention to?

whether all periods of work are included,
whether personal details are correct,
whether pension funds show the right information,
whether you have access to DigiD and MijnOverheid,
whether you keep documents from employers and agencies.

Summary

Retirement in the Netherlands does not have to be difficult if you know the basic rules. AOW is built up by 2% for each insured year, while employee pension depends on contributions and the pension fund. Rights accrued in the Netherlands do not automatically disappear when you leave the country.

Sources

SVB – information about AOW.
MijnPensioenoverzicht – official pension overview.
Pensioenfederatie – information about pension funds.