The Dutch Pension System Explained for Expats

The first pillar is the AOW, a flat-rate state pension paid by the SVB. It is based on the years you were insured in the Netherlands — usually the years you lived or worked here — not on your salary.

The second pillar is the workplace pension. Most employees are covered by a sector or company pension fund, with contributions split between employer and employee and taken from your gross salary.

The third pillar is private provision: lijfrente (annuity) products, savings and investments. These matter most for people with gaps in AOW or workplace pension, which is common for expats who arrive mid-career.

You build AOW rights for each year you are insured, and you pay for it through the AOW premium inside the first Box 1 bracket (17.9% in 2026). Someone who arrives at 35 and leaves at 45 builds only part of a full AOW.

Read how AOW works for expats

If your employer offers a pension scheme, joining is often mandatory, for example when your sector has a compulsory industry fund. Contributions are deducted from gross pay, which lowers the salary you are taxed on now; the pension is taxed when it is paid out.

Your annual pension statement (UPO) and mijnpensioenoverzicht.nl show what you have built so far. Check both when you change jobs, because small pots can end up spread across several funds.

Compare Dutch pension and FIRE planning

Under the Future of Pensions Act (Wet toekomst pensioenen), pension schemes are moving from promised benefits to contribution-based schemes with personal pension capital. Funds move on different dates during a transition period, so the timing depends on your fund.

For most expats the practical effect is that your pension becomes easier to read as a personal pot, and outcomes depend more on investment returns. Your fund must inform you before it switches.

Check your pension before leaving the Netherlands

If you have a pension gap (jaarruimte) you may be able to deduct lijfrente contributions in Box 1. Investments outside a pension product fall in Box 3, so it is worth comparing both routes with the calculators below.

The AOW age is linked to life expectancy. Confirmed so far: 67 in 2026 and 2027, and 67 years and 3 months from 2028 to 2031; for 2032 and later, check the SVB. Workplace schemes have their own retirement age, which you can often bring forward or defer.

Because you build 2% of a full AOW per insured year, most expats receive a partial AOW. Someone insured for 20 years gets roughly 40% of a full AOW — the rest has to come from workplace pension, savings or a pension in another country.

Pension money is tax-efficient but normally locked until retirement age, while flexible investments are taxed yearly in Box 3. An early-retirement (FIRE) plan therefore needs a bridge from your own investments to AOW and workplace pension. The Dutch Pension vs FIRE guide explains the trade-offs.

You keep the AOW and workplace pension rights you built. Workplace pension stays in the fund until retirement age, cashing out is generally not allowed, and the tax treaty with your new country decides who taxes the payments. See the guide on your Dutch pension when leaving the Netherlands.