The Pension Landscape Netherlands

The Netherlands is a true example of a genuine three pillar system or concept in terms of pension provision.

The system consists of a residence-based, basic state pension related to minimum wages. Secondly, occupational pension schemes which are quasi-mandatory. This is because there is a broad coverage of employees based on collective bargaining agreements and individual saving schemes. The statutory pension is a flat-rate pension and its contributions are solely paid by the employee. The state pension together with the occupational pension comprise the main income of the elderly.

Provider / Institution: Sociale Verzekeringsbank (SVB)
Statutory basic state pension (AOW)
Insurance is obligatory for all employees, self-employed persons and residents of the Netherlands.
Financing: Financed on a pay-as-you-go basis.
A contribution of 17,9% is paid by the employee on income of up to EUR 33.715 (2018).

Flat-rate pension guaranteed by the state corresponding to marital status and years of residence.
In January 2018, the maximum gross pension benefit was EUR 1.181,36 per month (without holiday pay and potential extra-pay) for a single person and EUR 814,74 for each partner as part of a couple.

Entitlement to a full old-age pension only after 50 years of residence between the ages 15 and 65+; the pensionable age has been increased in monthly steps since 2013 on reaching 67 years of age in 2023; the full old-age pension equals 70 % of the net minimum wage (net minimum wage is defined by the state twice a year) for singles and 50 % for each partner as part of a couple.

If this requirement is not met, a reduction of 2 % for each missing year takes place; a conditional buy-in is possible.

Coverage rate: Coverage rate in 2011: more than 90 % of employees; 75 % of all employees were members in an industry-wide pension fund.
Obligatory/ voluntary: Non-obligatory by law.
Quasi-mandatory through collective agreements between employers and trade unions. Industry-wide (sector) pension funds, e.g. the ABP for the public and educational sector. Occupational pension funds for people employed in a specific profession, e.g. medical specialist. Company pension plans and life insurances.
Tax incentives Taxation on pension benefits only when pension is received (reversal rule).
Products Individual voluntary insurance either through annuity insurance or endowment insurance.
Tax incentives: Tax relief up to a certain limit.

The Pension Register and Overview service will help you to get information about your pension obtaining from the statutory and occupational pension schemes in the Netherlands. To get started, you have to log in with a so-called DigiD.

DigiD stands for Digital Identity. With a DigiD (username and password) users can access a great number of online services offered by the Dutch government agencies. The DigiD can be requested at