The Dutch pension system is built on three important pillars: the AOW, the employer pension and individual pension savings. These pillars together ensure financial security after your retirement.
The three pillars of the pension system
| Pillar | Description | Responsible Party |
|---|---|---|
| 1st pillar | AOW (basic income) | Government via SVB |
| 2nd pillar | Pension via employer | Pension fund or insurer |
| 3rd pillar | Own savings arrangements | Individual (e.g. annuity) |
First pillar: General Old Age Pensions Act (AOW)
The AOW forms the basis of your pension and is regulated by the government:
- Everyone who reaches AOW age is entitled to this benefit
- Accrual takes place by living in the Netherlands (2% per year)
- The amount varies depending on your living situation (single or with partner)
- You receive a full AOW after 50 years of accrual
Second pillar: Pension via your employer
Many employees save for pension via their employer:
- The premium is shared by employer and employee
- The pension is managed by a fund or insurer
- The benefit depends on your income, length of service and scheme
- With the new Pensions Act, it shifts to a personal pension pot
Third pillar: Saving for later yourself
You can build up extra resources yourself for your old age:
- Via products such as annuity or bank savings
- Tax advantage: premiums are often deductible
- Ideal for self-employed persons or people without employer pension
Frequently asked questions about pension in Zoetermeer
Is my pension sufficient?
Check your accrual via mijnpensioenoverzicht.nl. Here you can see both your AOW and your employer pension in one overview.
What if I am self-employed in Zoetermeer?
As a self-employed person, you usually have no employer pension. You can save yourself via the third pillar, for example with an annuity product.
What does the new Pensions Act mean for me?
With the new act, you get a personal pension capital. This makes your accrual more transparent, but a fixed benefit is no longer guaranteed.
Extra questions about pension
Am I entitled to AOW as a resident of Zoetermeer?
If you live or work in the Netherlands, you automatically accrue AOW. For each year you are here between your 15th and AOW age, you earn 2% of the benefit. Check your status via mijnpensioenoverzicht.nl. Did you live abroad for a period? Then your AOW may be lower. The SVB calculates your final amount.
What if I change jobs?
Your accrued pension remains in place, but your new employer may have a different scheme. Value transfer to the new fund is an option, but not mandatory. Compare the schemes carefully via your pension administrator.
Tax on pension benefits?
You pay income tax on AOW and employer pension, depending on your total income after retirement. For the third pillar, premiums are deductible, but benefits are taxable. Use tools from the Tax Authorities for an estimate.
Stop working earlier?
That is possible, but your AOW only starts at the set age. You must bridge your income yourself. Employer pension can sometimes start earlier, but will then be lower. Consult your fund or an advisor in Zoetermeer.
Difference between fund and insurer?
A pension fund manages collective pensions for sectors or companies, such as ABP. An insurer often offers individual solutions, especially for smaller employers. Both are under strict supervision.
Details about the new Pensions Act?
The act introduces a personal pension pot between 2024 and 2028. You get more insight, but also more risk of fluctuations in benefits. Your fund or employer in Zoetermeer will keep you informed.
Using pension for mortgage or debts?
In general, this is not possible, because your pension is intended for later. In exceptional situations, there are sometimes options; consult an advisor or the Juridisch Loket Zoetermeer for help.
For legal questions about pension or disputes, you can contact the Juridisch Loket Zoetermeer. For complex matters, the District Court of The Hague (district) may be involved.