Dutch State Pension (AOW) Calculator 2026

What Is the AOW? The Dutch State Pension Explained for Expats

The AOW (Algemene Ouderdomswet, or General Old Age Act) is the Netherlands' basic state pension. It forms the first pillar of the Dutch pension system and provides a baseline income to every person who has lived or worked in the Netherlands during their working years. Unlike employer pensions or private retirement savings, the AOW is a social insurance scheme funded through premiums paid by all working-age residents as part of their payroll tax.

For expats and international workers, the AOW is often a source of confusion. Many questions arise: "Will I receive a Dutch pension even though I was not born here?" "What happens to my AOW if I return to my home country?" "How much less will I receive because I did not grow up in the Netherlands?" This guide answers these questions in detail, helping you understand exactly what you can expect from the Dutch state pension system.

The key principle is straightforward: you build up 2% of the full AOW pension for every year you are a resident of the Netherlands (or work here while living abroad) between age 15 and the AOW retirement age. After 50 years, you reach 100%. If you arrived in the Netherlands at age 30, you will have approximately 37 years of accrual by retirement, resulting in 74% of the full pension. The remaining 26% is your "AOW gap" -- a shortfall that you need to plan for through other means.

AOW Retirement Age: When Can You Start Receiving Your Pension?

The AOW retirement age in 2026 is 67 years and 3 months. This age has been gradually increasing over the past decade and is now linked to changes in life expectancy at age 65. The government reviews the retirement age every five years to determine whether an increase is necessary.

Your AOW pension begins on the first day of the month in which you reach the retirement age. For example, if you were born on March 15, 1959, you reach age 67 and 3 months on June 15, 2026, and your AOW starts on June 1, 2026. Here is the recent development of the AOW retirement age:

It is important to note that you cannot choose to start your AOW early or late. Unlike some countries where you can take early retirement at a reduced rate or delay for a higher payment, the Dutch AOW starts automatically at the statutory retirement age. If you wish to retire earlier, you must rely on your employer pension, private savings, or other arrangements to bridge the gap until AOW kicks in.

How Much AOW Will You Receive?

The amount of your AOW pension depends on two factors: your living situation and the number of accrual years. The gross monthly amounts for 2026 with a full 50-year accrual are:

On top of these amounts, you receive 8% holiday allowance (vakantiegeld), which is typically paid in May. The single person rate is set at 70% of the net minimum wage, while each person in a couple receives 50%. This means a single person receives proportionally more than half of a couple's combined amount.

Net amounts: because AOW recipients no longer pay AOW premiums (17.90%), the tax rate on AOW income is significantly lower than the rate applied to working-age salaries. A single person with full AOW rights nets approximately €1,280 per month after tax. Additionally, retirees benefit from the elderly person tax credit (ouderenkorting) of up to €2,067 per year and, if applicable, the single elderly person credit (alleenstaande ouderenkorting) of €540 per year.

The AOW Gap: Why Expats Receive Less

The most critical issue for expats regarding the AOW is the AOW gap (AOW-gat). Because you only accrue 2% per year of living or working in the Netherlands, every year spent abroad before arriving in the Netherlands (or after leaving) reduces your future pension. This can result in a substantial shortfall.

Consider this example: Maria moved from Spain to the Netherlands at age 32 and plans to work here until the retirement age of 67 years and 3 months. She will have lived in the Netherlands for approximately 35 years, giving her 70% of the full AOW. As a single person, she would receive approximately €968 per month instead of the full €1,383. That is a gap of €415 per month, or nearly €5,000 per year.

Another example: James arrived from the United Kingdom at age 45. He will accrue approximately 22 years of AOW (44%). His monthly pension as a single person would be roughly €609 -- less than half the full amount. James will need significant employer pension savings or private retirement planning to maintain his standard of living.

Voluntary AOW Insurance: Closing the Gap

The Dutch government offers a limited option to bridge AOW gaps through voluntary AOW insurance (vrijwillige AOW-verzekering), administered by the SVB (Sociale Verzekeringsbank). This is primarily designed for people who leave the Netherlands and want to continue building AOW rights while living abroad.

Key rules for voluntary AOW insurance:

• You must apply within one year of leaving the Netherlands (or within one year of no longer being compulsorily insured).
• The maximum duration is 10 years.
• The premium is a percentage of your worldwide income, with a minimum and maximum amount. The premium rate is the same as the compulsory AOW premium: 17.90% of taxable income in the first bracket.
• For people with low incomes abroad, there is a reduced premium.

If you are an expat who has already moved to the Netherlands, voluntary insurance is generally not available for years before your arrival. You cannot retroactively "buy back" years you spent in another country before coming to the Netherlands. This is a common misconception. The voluntary insurance is designed to protect your existing accrual if you leave, not to fill gaps from before you arrived.

AOW and Your Employer Pension (Second Pillar)

The Dutch pension system consists of three pillars, and understanding how they interact is crucial for retirement planning:

• First pillar: AOW -- the state pension described on this page, based on residency.
• Second pillar: employer pension -- occupational pensions arranged through your employer, typically managed by a pension fund or insurance company.
• Third pillar: private savings -- personal retirement savings such as annuities (lijfrente), bank savings products, and investments.

Most Dutch employers offer a pension scheme through the second pillar. A key concept in Dutch employer pensions is the franchise (franchise or AOW-offset). This is the portion of your salary that is assumed to be covered by AOW, so pension contributions only apply to your salary above this amount. In 2026, the franchise is typically around €17,545. This means if you earn €60,000, pension contributions are calculated on €60,000 - €17,545 = €42,455.

For expats, this is important because the franchise assumes you will receive full AOW. If you have an AOW gap, your total retirement income (AOW plus employer pension) may be lower than what the pension system was designed to provide. Some employers offer an additional pension arrangement to compensate for AOW gaps, but this is not standard. It is worth discussing this with your employer's HR department or a pension advisor.

Tax Treatment of AOW for Expats

AOW income is taxed in the Netherlands, but the tax treatment for retirees is significantly more favourable than for working-age individuals. Here is how it works:

• No AOW premium: once you reach AOW age, you stop paying the 17.90% AOW premium. This reduces the first bracket rate from 35.75% to just 17.85%.
• Elderly person tax credit (ouderenkorting): up to €2,067 per year for retirees with income below approximately €46,002. The credit phases out above this level.
• Single elderly person credit (alleenstaande ouderenkorting): an additional €540 per year for single AOW recipients.
• General tax credit (algemene heffingskorting): this credit also applies to retirees, though it is reduced because AOW recipients do not pay the AOW component.

If you retire and move back to your home country, the tax treatment of your AOW depends on the tax treaty between the Netherlands and your country of residence. In many cases, state pensions are only taxable in the country that pays them (the Netherlands), but some treaties assign taxing rights to the country of residence. Check the specific treaty for your country, or consult an international tax advisor.

Planning Your Retirement as an Expat in the Netherlands

Given the potential AOW gap and the complexities of international pension rights, retirement planning is especially important for expats. Here are practical steps you should take:

1. Request an AOW overview from the SVB: you can request a pension overview (pensioenoverzicht) showing your current accrual and expected AOW amount. This is available through mijnpensioenoverzicht.nl.
2. Check your employer pension: log into your pension fund's portal to see what you are building up. Major funds like ABP, PFZW, and PMT have English-language options.
3. Consider third-pillar savings: if your combined AOW and employer pension will be insufficient, consider tax-advantaged retirement savings through annuity products (lijfrente). Contributions are tax-deductible up to a certain limit.
4. Investigate pension rights from other countries: if you have worked in multiple EU/EEA countries, your pension rights are coordinated under EU regulation 883/2004. Each country pays the pension you accrued there. Request an overview from your previous country's pension authority.
5. Consider voluntary insurance if leaving: if you plan to leave the Netherlands before retirement, decide within one year whether to opt for voluntary AOW insurance. Run the numbers to determine whether the premiums are worthwhile compared to the additional pension income you would receive.

EU Coordination: Pensions Across Borders

If you have worked in multiple EU or EEA countries, the European pension coordination rules ensure that you do not lose your pension rights. Each country pays you the pension accrued there when you reach that country's retirement age. This means you may receive state pensions from multiple countries at different ages, depending on each country's retirement age.

For example, if you worked in Germany for 15 years and then in the Netherlands for 25 years, you would receive a German state pension (for 15 years of accrual) and a Dutch AOW (for 25 years of accrual, or 50% of the full AOW). The German pension starts at the German retirement age, and the Dutch AOW starts at the Dutch retirement age of 67 years and 3 months. The SVB coordinates with foreign pension authorities to ensure your rights are properly calculated.

Frequently Asked Questions

Sources

• SVB: AOW Pension
• Government of the Netherlands: Pensions
• Mijn Pensioenoverzicht (Pension Overview)
• Belastingdienst (Dutch Tax Authority)