How are pensions currently set up in the Netherlands?

In the Netherlands, we have all been receiving pensions since 1957, so that when we eventually retire, we still have money to live on. Pensions are well organized in the Netherlands. And they will continue to be set up in a very good way. In contrast to many other countries, everyone who lives and/or works in the Netherlands accrues a pension. This is something to be both proud of and something we want to be protective of.


The Dutch pension system is made up of 3 pillars:

  1. Old Age Pension (AOW): is the basic pension. Everyone who lives and/or works in the Netherlands accrues 2 percent AOW pension annually. AOW benefits start when a person reaches the pensionable age. The amount of the AOW is adjusted annually on the basis of the development of the minimum wage.
  2. Supplemental pension accrual through the employer: About 90 percent of employers offer employees a supplemental retirement plan. In many cases, this is mandatory. Usually, employers contribute 2/3 of the premium and the employee contributes 1/3 each month. Pension funds invest the premiums in order to pay out supplementary pensions down the road.
  3. Supplemental, individual pension insurances: In the Netherlands, people also have the option to save for their supplementary, individual pension in a tax-advantaged way. You can take out insurance policies such as annuities, single-premium policies or life insurance policies for this purpose. People use the supplementary individual insurance policies, for example, to fill a pension gap or to retire early..

New pension rules

The new rules for pension will ensure that the three pillars that pensions are based on in the Netherlands continue to fit in with the changing labor market, economy and society. This will give everyone in the Netherlands greater insight into how pensions are structured and what you can expect in your old age.