How does retirement work?
Many people feel that retirement is still far off. Yet it’s nice to know something about it. On this page, we explain how exactly you accrue pension. And what impact the economy has on your pension. But also what you can do yourself to set money aside. For example, if you are a freelancer without employees or accrue little or no pension through your employer.
How do you accrue a pension?
There are three pension pillars in the Netherlands: from the government, via your employer and what you arrange yourself. Most people accrue a pension in the first two pillars. The third pillar differs per person. Whether this is necessary depends on your personal situation and wishes.
The first pillar is the basic pension from the government: the AOW pension. This is paid by the Sociale Verzekeringsbank (SVB). Everyone who lives or works in the Netherlands is entitled to this. The amount of the AOW pension is adjusted annually to the development of the minimum wage. You will receive your AOW pension if you reach the AOW age. Calculate here what your AOW age is.
How does retirement work?
Scroll to How does retirement work?How does retirement work?
How can you set aside money for your pension?
Scroll naar How can you set aside money for your pension?How can you set aside money for your pension?
-
1. A pension product
You can set aside money with an annuity product at an insurer, bank or investment institution. In many cases, this is tax deductible. Although, your money is locked up for a longer period of time.
-
2. Saving or investing
If you save or invest money yourself, you can usually withdraw it in the interim. Handy if you need it for something else. You do, however, pay tax on these savings (above a certain level).
-
3. Mortgage redemption
Do you own a house? Sometimes you can repay the interest-only component of your mortgage more quickly. That way you will have fewer living costs now and when you retire.
Which pension choices can you make?
Scroll to Which pension choices can you make?Which pension choices can you make?
When your retirement age approaches, it is good to delve deeper into the choices you want or can make. For example:
Retire early or continue working.
(Partially) swap your partner's pension for more old-age pension, or vice versa.
Initially receive a higher pension for a certain period and then a lower pension.
Ask your pension provider which choices apply to you and what is financially feasible.
-
AOW (General Old Age Pensions Act)
More about the AOW More about the AOWWould you like to know more about the AOW accrual, your AOW age or, for example, the consequences of working or living abroad?
-
New rules for pension
More about the new rules More about the new rulesFrom 1 July 2023, new rules will apply to pensions through your employer. As a result, most pensions will change.
-
Retire early or continue working
According to my amounts According to my amountsDo you want to stop working a little earlier? Or would you like to keep going? Here you can see the consequences this has for your pension amount.