The Dutch AOW Pension Explained in Plain English

If you have lived or worked in the Netherlands, you may be entitled to an AOW pension when you reach state pension age, even if you are not Dutch. Most English-speaking expats have never received a clear explanation of how it works, how much they might get, or what they need to do to claim it. 💚

This guide covers what the AOW pension is, who qualifies, how the amount is calculated, and how to apply.

1. What the AOW pension is

AOW stands for Algemene Ouderdomswet, which translates as the General Old Age Pensions Act. It is the Dutch state pension, paid by the SVB (Sociale Verzekeringsbank), the Dutch social insurance bank. The AOW is a residency-based pension, not a contribution-based one. This means that what matters is how many years you have lived or worked in the Netherlands, not how much you earned or paid into any particular fund.

The pension is paid monthly from the moment you reach your Dutch state pension age. It is taxable in the Netherlands, though tax treaties between the Netherlands and many other countries affect how it is treated abroad.

Simple action: Create a free account on Mijn SVB to see your current AOW build-up and get a personal estimate of what you are likely to receive.

2. Who qualifies

Anyone who has lived or worked legally in the Netherlands between the ages of 17 and their AOW age can build up entitlement to the AOW pension. You do not need to be Dutch, and you do not need to have been in employment. Simply living in the Netherlands, paying Dutch taxes, counts as building up AOW rights.

The current AOW age is 67. This is linked to life expectancy and may increase in future years. The SVB will notify you of your personal AOW date.

If you moved to the Netherlands later in life, or spent periods outside the country, you will receive a partial pension rather than a full one. Each year outside the Netherlands reduces your entitlement by 2%.

💡 Tip: If you have worked in another EU or EEA country and paid social insurance there, those years can sometimes be combined with your Dutch record to help you qualify. Contact the SVB to check whether this applies to your situation.

3. How the amount is calculated

The AOW builds up at a rate of 2% per year. To receive the full pension you need to have been insured in the Netherlands for 50 years between the ages of 17 and 67. If you have 40 years of Dutch residency, for example, you receive 80% of the full rate.

The full monthly rate depends on your household situation. Singles receive a higher amount than people living with a partner, as the costs of living alone are higher. The SVB updates the rates twice a year in January and July in line with changes in the national minimum wage.

Example: If you moved to the Netherlands at age 32 and stay until your AOW date at 67, that gives you 35 insured years, which is 70% of the full pension. If the full single rate is around €1,400 per month, you would receive around €980 per month.

Check SVB.nl for the current rates, as these are updated every six months.

4. When and how to apply

The SVB will write to you around 6 months before your AOW date to let you know your pension is coming. You can also apply yourself through Mijn SVB if you prefer not to wait for the letter.

The application takes around 15 minutes and requires your DigiD (the Dutch digital identity system). If you no longer live in the Netherlands, you can apply through the SVB's international office.

For questions, the SVB helpline is available on 0800 6549, free within the Netherlands, Monday to Friday. If you are calling from abroad, the international number is +31 555 369 769.

Simple action: Log in at Mijn SVB now to check your build-up record. Even if your AOW date is years away, it is worth knowing where you stand so you can spot any gaps while there is still time to address them.

5. Living outside the Netherlands

The AOW is paid wherever you live in the world. If you have left the Netherlands and returned to the UK, Ireland, or another country, you are still entitled to the AOW you have built up, and it will be paid to your bank account abroad.

Tax arrangements vary. In most cases the Netherlands has the right to tax the AOW, but this depends on the tax treaty between the Netherlands and the country where you now live. An international tax adviser or the SVB can clarify your specific position.

💡 Tip: If you left the Netherlands before reaching AOW age and are now living elsewhere, check whether you were given the option to continue your Dutch insurance voluntarily. Some people who left years ago missed this and ended up with a smaller pension than they expected.

Understanding your AOW entitlement takes an hour at most, and what you find out could make a real difference to your retirement income. Whether you are still in the Netherlands or have long since moved on, it is worth knowing what you have earned. 💛

Start by checking your AOW record at SVB.nl or calling 0800 6549 if you are based in the Netherlands. For more guides on making the most of your money in retirement, explore Una's guides or sign up to our newsletter.