Here is a piece of good news most expats miss: simply by living in the Netherlands, you are building up a state pension. It is called the AOW, and understanding it, especially the trap for people who move around, is worth a few minutes now.
What the AOW is
The AOW (Algemene Ouderdomswet) is the Dutch basic state pension: a flat-rate income paid by the SVB (Sociale Verzekeringsbank) once you reach the state pension age. It is separate from any workplace pension (pensioen) you build through an employer, which is the subject of your Dutch pension documents. Think of the AOW as the government floor, and a workplace pensioen as the layer on top.
The AOW-leeftijd (state pension age)
You receive the AOW from your AOW-leeftijd, which is currently around 67 and slowly rising with life expectancy. Your exact date depends on your birth year; the SVB and government publish the schedule.
How you build it up: 2% a year
This is the key mechanic. As the SVB explains, you accrue 2% of the full AOW for every year you are insured, which generally means every year you legally live or work in the Netherlands between age 15 and your AOW age.
| Insured years | Share of full AOW |
|---|---|
| 50 years | 100% |
| 40 years | 80% |
| 25 years | 50% |
So someone insured the whole time gets the full amount; someone who arrives as an adult builds up less.
The expat trap: the kortingsregel
Here is what catches movers out. Years you are not insured, typically years living abroad before your AOW age, reduce your pension by 2% each. This is the kortingsregel, and the resulting shortfall is often called the AOW-gat (AOW gap).
The fix: you can take out voluntary insurance (vrijwillige verzekering) with the SVB for periods you are abroad, which lets you keep accruing those 2% years. As Netherlands Worldwide and the government’s gap-filling page explain, there are deadlines to opt in, so it is worth checking early if you expect to move away and back.
The vocabulary
| Dutch | English |
|---|---|
| de AOW | basic state pension |
| de AOW-leeftijd | state pension age |
| de opbouw | accrual / build-up |
| de korting | reduction |
| het AOW-gat | the AOW gap |
| de vrijwillige verzekering | voluntary insurance |
| het pensioen | (workplace) pension |
Where it connects
The AOW is part of the Dutch money and admin picture alongside reading your payslip and holiday pay and keeping your details current, since insured years depend on being registered at your correct address. SVB letters use the same official-Dutch style you meet when filling in any government form.
The bottom line
The AOW is the Dutch state pension, paid by the SVB from around age 67, and you build it up 2% per insured year living or working here, 50 years for the full amount. Years abroad cut it 2% each (the kortingsregel / AOW-gat), but vrijwillige verzekering with the SVB can fill the gap. It is separate from a workplace pensioen. Check your projected AOW with the SVB, especially if you plan to move.
Learn it in five minutes a day
Learn Dutch For Expats is an app, available on the App Store, that teaches the pension and admin vocabulary you meet in SVB letters, AOW, opbouw, korting, vrijwillige verzekering, in five-minute lessons built on real documents, so your retirement paperwork is clear.
Frequently asked questions
What is the AOW in the Netherlands?
The AOW (Algemene Ouderdomswet) is the Dutch basic state pension: a flat-rate income paid by the SVB (Sociale Verzekeringsbank) once you reach the state pension age (AOW-leeftijd), which is around 67 and slowly rising. It is funded on a pay-as-you-go basis and is separate from any workplace pension (pensioen) you build with an employer. Almost everyone who lives or works in the Netherlands is insured for it automatically.
How is the AOW built up?
You accrue 2% of the full AOW for every year you are insured, which generally means every year you legally live or work in the Netherlands between age 15 and your AOW age. So 50 insured years gives you the full 100%. If you arrive as an adult or spend years abroad, you will have fewer insured years and therefore a lower AOW, unless you fill the gap with voluntary insurance through the SVB.
Will I get less AOW because I lived abroad?
Usually yes. Under the kortingsregel, each year you were not insured (for example, living abroad before your AOW age) reduces your AOW by 2%, creating what is called an AOW-gat (AOW gap). You can often avoid or reduce this by taking out vrijwillige verzekering (voluntary insurance) with the SVB for the years you are away, which lets you keep accruing. Check your projected entitlement with the SVB.
What is the best app to learn Dutch for pensions and official letters?
Learn Dutch For Expats, an app available on the App Store, is the best pick because it teaches the admin and finance vocabulary on SVB and pension letters, AOW, opbouw, korting, vrijwillige verzekering, AOW-leeftijd, in five-minute real-situation lessons, so retirement paperwork is something you understand rather than file away unread.
