Contributions, pension insurance and… a lot of questions. Dutch pension is a topic that certainly interests all Poles who have decided to emigrate for work in the Netherlands. Are you living and working in the Netherlands and wondering if and when you are entitled to a Dutch pension? Or maybe you are just considering going to work in the Netherlands and this is where you are linking your future to? What should you do before the age of the retirement?
You will find all the answers to the above topics in this article!
Pension in the Netherlands – everything you need to know
First of all, it is worth noting the fact that the Dutch pension system is one of the best and most developed in the world. Retirement in the Netherlands is therefore granted under slightly different rules from those in our country. Before reaching retirement age, you must go to a specific office to apply for a Dutch pension.
However… what is worth knowing as a first step?
The pension. The Netherlands has 3 basic pillars
- Basic pension (AOW for short)
- Employee pension plans
- Individual pension programs
A pension in the Netherlands is possible for Poles after working a certain amount of time. However, due to EU regulations, it is possible to add general work experience to pension calculations. Step by step, we will describe all aspects of the Dutch pension for Poles. Let’s start by describing the three pillars that make up the pension in the Netherlands.
AOW pension entitlement
Algemene Ouderdomswet is otherwise known as the Dutch basic pension (AOW). This pillar covers all persons living in the Netherlands who reach retirement age. It is a type of social pension, and it doesn’t matter at all whether you worked or raised a child while living in the Netherlands. This pillar is available to all residents of the Netherlands.
What is important, the AOW pension also covers all those who have only lived and worked in the Netherlands for a while. Surely this topic will interest you if you have already been working in the Netherlands for some time or are just considering working there.
Every legally employed person in the Netherlands pays social insurance contributions. Part of this is pension insurance, which is paid from the time you reach retirement age, no matter where you will be in your retirement. Usually, you must be employed (insured) in the Netherlands for a least one year to qualify for a Dutch basic pension (AOW).
Are you curious about how your Dutch salary is structured? You can find this information in the salarisspecificatie, or Dutch salary slip. There you will find information about whether a pension benefit has been paid on your salary. Be aware that it is charged after you have worked 26 weeks. We wrote about how to read the Dutch payslip here.
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Employee pension programs – what are they?
The second pillar of the Dutch pension includes so-called Employee pension programs. This is a plan that only contributors are entitled to. You should know that they are extremely popular in the Netherlands, with as many as 90% of Dutch people taking advantage of them.
Individual pension programs are especially dedicated to entrepreneurs
The last pillar is individual pension programs, which are directed to people who cannot take advantage of Employee pension plans. These are mainly businessmen, which are self-employed people.
How many years do I have to work to be entitled to a pension in the Netherlands?
OK. You already know the three pillars that comprise the pension system in the Netherlands. So, let’s move on to the details. You are probably wondering after how many years of work in the Netherlands, you are entitled to any pension. The best way to illustrate this is to use specific examples.
Calculating the AOW pension
During the calculation of the AOW basic pension, you always take into account the last 50 years of work. It is worth knowing that for each year worked in the Netherlands, you are granted 2% of the full pension benefit. So, after 5 years of work in the Netherlands, we are entitled to 10% of the pension value.
What is the retirement age in the Netherlands?
Currently, the Dutch retirement age is 66 years and 7 months. However, it is worth keeping in mind that the retirement age will gradually increase as life expectancy increases.
What is the AOW base pension amount?
You can find the exact and most up-to-date totals on the website of the Dutch Sociale Verzekeringsbank, that is, the social insurance bank. As of July 2022, the AOW pension amounts are:
The AOW pension in July 2022 is:
- 1261 euros per month plus holiday allowance for a single person;
- 864 euros per month plus holiday allowance for a person in a relationship.
Does work in the Netherlands count towards a pension in your country?
Of course, if your country belongs to the European Union, both countries have EU coordination of pension systems. This means, therefore, that work in the Netherlands can, in many cases, count as part of a pension in your own country.
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