Pensions & retirement age in the Netherlands

The Netherlands is frequently recognised as having one of the world’s top ranking pension systems by the Melbourne Mercer Global Pension Index. This high ranking is thanks to the diversity of the Dutch pension system’s funding sources, its accuracy in measuring costs and contributions to ensure fair distribution, and its strong regulation by the Dutch Central Bank and the Dutch Authority for the Financial Markets.

In comparison to many other countries, the Netherlands is relatively well-prepared to deal with the issue of an ageing population, as it incorporates different models of pension funding with a policy of solidarity and risk-sharing. This page looks at pensions and the retirement age in the Netherlands. 

The Dutch pension system

The Dutch pension system combines a pay-as-you-go system, where the working population pays for the benefits of pensioners, with an individual investment system. In the individual investment system, collectives and individuals make high- and low-risk investments to supplement what they will receive from the state pension. 

These different models can be defined as the three pillars of the Dutch pension system: 

• Pillar 1: The state (AOW) pension 
• Pillar 2: Pension funds 
• Pillar 3: Private pensions

The state (AOW) pension in the Netherlands

The base layer of the Dutch pension system is the AOW pension (also known as the state pension). The AOW pension is paid out to everyone who lives or works in the Netherlands between the ages of 15 and 67. The amount you receive depends on how long you contributed to national insurance for, and your living situation when you retire. Find out more about the AOW pension. 

Pension funds in the Netherlands

The pension income provided by the state pension is rarely enough to maintain one’s standard of living in retirement. For this reason, almost 90% of the population is covered by a pension fund (also called a workplace pension) through their employer. The second pillar of the Dutch pension system, pension funds in the Netherlands are non-profit schemes that manage and invest members’ pension contributions and pay out benefits. 

Private pensions in the Netherlands

The third and final pillar of the Dutch pension system is private pension provision. Designed specifically for people who cannot save via a pension fund (but still open to anyone), private pensions in the Netherlands come in a range of forms, including retirement annuity contracts, special pension savings accounts, life insurance, and other investments. 

Creating a retirement plan

The three pillars of the Dutch pension system are designed to be combined with each other to create an adequate retirement income. A financial advisor in the Netherlands can help you explore your options and create a retirement plan containing elements from pillars one, two and three, ensuring you make the most of all the incentives on offer. 

Pensions & taxes in the Netherlands

The Netherlands follows a downstream taxation policy, under which contributions to retirement provision are (partially) tax-free, while pension income received later in life is subject to income taxes. This is beneficial to workers, reducing their tax burden during their working life and only imposing taxes after retirement, when their income (and so their tax burden) is generally lower. 

Retirement age in the Netherlands

As in many countries, the age of retirement, when you are eligible to start receiving your pension, is being gradually pushed back by the Dutch government:

• Since 2024, the age of retirement has been 67 years
• In 2023, the age of retirement was 66 years and 10 months
• In 2022, the age of retirement was 66 years and 7 months
• In 2021, the age of retirement was 66 years and 4 months
• In 2020, the age of retirement was 66 years and 4 months
• In 2018, the age of retirement was 66 years
• In 2017, the age of retirement was 65 years and nine months
• In 2015, the age of retirement was 65 years

In 2028, the age of retirement will increase to 67 years and 3 months. 

You can check the age at which you can retire by filling in your birth date on the SVB’s retirement calculator page.

Early retirement in the Netherlands

It is possible to retire early in the Netherlands, but your AOW pension will not kick in until you reach state retirement age, so you must independently finance the interim period. You can also choose to retire later, but you will still receive your AOW pension from the date you reach statutory retirement age. 

It may be possible to start receiving your workplace pension or private pension before you reach retirement age, but you will need to discuss this with your pension provider. Generally, the benefits will be substantially less, as they will have to last longer. If preferred, you may also retire later, with the potential to considerably increase your pension benefits.

Living abroad & Dutch pensions

It is sometimes possible to receive Dutch pension benefits if you leave the Netherlands, depending on the country you move to. In some cases, people moving overseas are eligible to receive remigration benefits from the SVB, depending on their country of origin and family situation.

Paying into a Dutch pension fund from abroad

You can voluntarily contribute to AOW pensions from abroad, usually for up to 10 years (with some exceptions). 

Depending on where you live, it is not always possible to continue contributing to a workplace or private pension from abroad - especially if you move outside of the EU. If in doubt, speak to your pension provider. 

Can I receive my Dutch pension abroad? 

You can usually receive your AOW pension abroad, depending on your country of residence. Note that your pension will be subject to taxation and national insurance contributions. Visit our AOW pensions page to learn more about receiving your Dutch state pension abroad. 

The rules for receiving workplace and private pensions abroad vary according to your country of residence and the type of pension and provider. If you are not planning on living in the Netherlands long-term, it’s a good idea to discuss your possible future plans with your pension provider or a financial advisor, to understand what would work best in your situation. 

How much do I have in my pension pot? 

Using the website mijnpensioenoverzicht.nl, you can get an overview of all of your different pension pots and a projected value of your pension when you reach retirement age. You will need a DigiD to log in. 

Dutch pensions in a nutshell

In summary, if you have lived or worked in the Netherlands then you will receive a state pension (Pillar 1) but it will be proportional to the number of years you have spent in the Netherlands, and you must live in the Netherlands or in certain specified countries.

Whether you receive pension benefits from a pension fund (Pillar 2) depends on if you have signed a pension agreement with your employer and if you keep track of your Dutch pension scheme if you move out of the Netherlands. How much you will receive depends on the number of years you work, and on your salary.

You will only receive benefits from individual pension products (Pillar 3) if you have actively paid into or invested in a pension product such as life insurance, shares or property.