Understanding Dutch pensions: A guide for expats planning for the future

The Dutch pension system is one of the most comprehensive in the world, ensuring financial security for retirees through a combination of state support, employer-sponsored schemes, and private savings. If you’re an expat living in the Netherlands, it’s important to understand how the system works, how you can build up pension rights, and what happens to your retirement savings if you leave the country. This guide covers everything you need to know about expat pension schemes in the Netherlands.

What is AOW? (State Pension in the Netherlands)

The AOW pension in the Netherlands (Algemene Ouderdomswet) is the basic state pension that every resident of the Netherlands accumulates over time. It is funded through social security contributions and administered by the Sociale Verzekeringsbank (SVB). The retirement age in the Netherlands is currently set at 67 (as of 2025) and will increase in 2028 to 67 years and 3 months. The AOW pension provides a foundation for retirement but is often not sufficient for a comfortable lifestyle, making additional pension provisions necessary.

Employer pension schemes

Most employers in the Netherlands offer expat pension schemes as part of their benefits package. These workplace pensions operate on a collective basis, with both employees and employers contributing a percentage of the employee’s salary. Contributions are invested and grow over time, ensuring financial stability post-retirement. 

While employer pensions are not legally required, nearly 90% of Dutch companies provide them. Additionally, some sectors have mandatory pension schemes through sectoral pension funds (Bedrijfstakpensioenfonds, Bpf). Employers and employees typically share the costs, with employer contributions averaging between 8 and 16% of pensionable salary (as of 2025).

Expats who work for a Dutch company should check whether they are enrolled in a workplace pension scheme, as this can significantly impact their financial security in retirement.

Private Pensions: Individual retirement plans

For expats looking to supplement their Dutch pension, private retirement savings offer additional flexibility and security. Private pensions in the Netherlands fall into the third pillar of the pension system and include:

1. Lijfrente (annuity savings): A tax-advantaged pension product offered by banks and insurance providers.
2. Investment-based pension accounts: Private funds where individuals invest in stocks, bonds, or real estate for long-term growth.
3. Savings plans: Some expats opt to save separately for retirement, especially if they are self-employed or lack access to an employer pension scheme.

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Private pensions can be beneficial for those who plan to retire in the Netherlands or wish to ensure they have enough savings beyond the state and workplace pensions.

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Can expats receive AOW Pension in the Netherlands?

Yes, expats can receive AOW pension in the Netherlands, but the amount depends on how long they have lived or worked in the country. For every year a person resides in the Netherlands between the ages of 15 and 67, they accumulate 2% of the full AOW pension. If an expat has not lived in the Netherlands for 50 years before reaching retirement age, their pension will be reduced accordingly.

Expats should be aware that time spent working abroad may impact their AOW entitlements. Some countries have pension agreements with the Netherlands that allow expats to transfer their pension rights.
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How do expats build up AOW pension?

Expats build up AOW pension in the Netherlands by residing and working in the country. The system is based on residence rather than employment, meaning that anyone legally living in the Netherlands is accumulating pension rights.

If an expat is employed by a Dutch company, AOW contributions are deducted automatically from their salary through payroll tax. Self-employed expats must contribute to their own AOW through national insurance payments.

Time spent outside the Netherlands may result in gaps in pension coverage unless voluntary contributions are made. To ensure continuous AOW buildup, expats who spend time abroad should check whether they need to pay voluntary contributions to maintain their pension entitlements.

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Can you transfer an international pension to the Netherlands?

Expats moving to the Netherlands may wonder whether they can transfer their existing expat pension scheme to the Dutch system. The possibility of transferring a foreign pension depends on:

• Bilateral agreements: Some countries have social security agreements with the Netherlands that allow for pension transfers.
• Tax implications: Moving pension funds between countries can have significant tax consequences.
• Pension provider policies: Not all pension providers allow international transfers.

Either way, expats should consult a financial advisor to determine the best course of action for transferring their pension funds. Our sister company, Broadstreet, specializes in cross-border tax matters, helping expats navigate complex issues like double taxation and international payroll. With over 25 years of experience, Broadstreet offers expert guidance to ensure your pension transfer aligns with Dutch tax regulations and your long-term financial goals.

What happens if an expat leaves the Netherlands?

If an expat leaves the Netherlands before reaching retirement age, their pension rights remain protected:

• AOW Pension: Expats retain AOW rights for the years they have lived in the Netherlands. Payments can often be made abroad.
• Employer Pensions: Workplace pension savings remain intact and will be paid out upon reaching retirement age.
• Private Pensions: Expats can continue contributing to private pensions if they choose.
• Pension Transfers: In some cases, pensions can be transferred to another country’s pension scheme.

Expats should review their pension options before relocating to ensure they do not lose valuable retirement benefits.

Expat pension Holland in conclusion

Understanding the expat pension in Holland is crucial for securing a comfortable retirement. Whether you are an employee, self-employed, or planning to move abroad, having a clear pension strategy is essential. Key takeaways:

• AOW pension in the Netherlands provides a basic retirement income, but additional savings are necessary.
• Employer pension schemes offer significant benefits, with most Dutch companies providing contributions.
• Private pension options give expats flexibility to build additional savings.
• Expats can receive AOW pensions based on their residence history.
• International pension transfers may be possible but require careful planning.
• Pension rights remain protected if you leave the Netherlands, but it’s important to review options before relocating.

A final tip: for a complete overview, we recommend the useful website Mijnpensioenoverzicht.nl. On this centralized online platform, individuals can access their pension details – among others, AOW, employer pensions, and personal savings.

Sorting out your pension early ensures financial security in the long run. If you need assistance with pension planning or compliance in the Netherlands, contact Employor today to learn more about your options and secure your future retirement income.

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