What does an AOW gap entail?
An AOW gap occurs when you have not been insured in the Netherlands for the full 50 years for the AOW. For each year missing, your AOW benefit is reduced by 2%. This can lead to a significant loss of income, especially if you have lived abroad for an extended period.
Reasons for an AOW gap
| Reason | Effect |
|---|---|
| Residence abroad | No AOW insurance |
| Work abroad | Usually no AOW accrual |
| Late immigration | Fewer years for accrual |
| Detachment without coverage | Missing accrual years |
How do I calculate my AOW gap?
Practical example
Suppose you have lived and worked outside the Netherlands for 12 years:
- Accrual: 38 years instead of 50 years
- Reduction: 12 x 2% = 24%
- AOW benefit: 76% of the full amount
Reducing an AOW gap
There are ways to partially fill an AOW gap:
- Voluntary premium payment: Pay AOW premium during residence abroad
- Retrospective purchase: Buy back years (maximum 10, expensive)
- Supplementary support: Via the AIO scheme (supplementary income provision for the elderly)
Bridging to AOW age
If you stop working before your AOW age, there are several options:
- Early pension: Via your pension fund (with lower benefit)
- RVU scheme: Early retirement via your employer
- Own resources: Use of savings or home equity
- IOW benefit: For unemployed persons after age 60 upon expiry of unemployment benefits
AIO support in Zoetermeer
The AIO (Supplementary Income Provision for the Elderly) helps supplement your income to the social assistance level if:
- You are entitled to AOW
- Your total income is below the social minimum
- Your assets remain below the permitted limit
Can I pay AOW premium from abroad?
Yes, via the SVB you can voluntarily insure yourself. This usually needs to be arranged within one year after departure.
Is buying back AOW years financially sensible?
This depends on your age and the number of years you want to buy back. The costs are high, so have an advisor calculate it.
Is AIO automatically granted for low AOW?
No, you must apply for AIO yourself via the SVB.
Frequently asked questions about AOW in Zoetermeer
How do I find out if I have an AOW gap?
If you have not been insured in the Netherlands for 50 years, you probably have an AOW gap. Check your accrual via MijnSVB.nl or request an overview from the SVB. Each missed year means 2% less benefit. If uncertain, seek advice from an expert or the SVB.
What does it cost to buy back AOW years?
The costs vary based on your age and the number of years you want to buy back. The premium is calculated based on the minimum wage and can be substantial. Request a quote from the SVB to assess feasibility.
Can I prevent an AOW gap upon emigration?
Yes, by voluntarily insuring yourself via the SVB within 1 year after departure. You then pay premium to continue your accrual. Contact the SVB in time to prevent gaps.
How can I apply for AIO in Zoetermeer?
You apply for AIO with the SVB by filling out a form and demonstrating that your income is too low and your assets are within the limit. After approval, you receive a monthly supplement.
What are the pros and cons of early retirement?
Early retirement gives you the chance to stop earlier, but your monthly benefit will be lower. Carefully consider your financial situation before making this choice.
Help in Zoetermeer
For legal questions about AOW or supplements such as AIO, you can go to the Juridisch Loket Zoetermeer. In case of disputes or complex matters, a case can be handled by the Rechtbank Den Haag, under which Zoetermeer falls.