AOW State Pension: How It Works, Entitlement, and Expat Gaps

Key Takeaways

The AOW is a basic state pension paid to everyone who has lived or worked in the Netherlands. It is not linked to how much you earned or contributed — only to how many years you were insured.
You build up 2% per year of residence/work between age 15 and your AOW age. 50 years = 100% entitlement.
The full AOW is approximately €1,350/month (single) or €930/month per person for couples (2026, gross).
The AOW age is 67 in 2026, linked to life expectancy for future years.
Expats have gaps — every year you lived outside the Netherlands before arriving (from age 15) costs you 2% of the full AOW.
You can voluntarily buy back missing years in some cases, but the window is limited and the cost can be high.

What Is the AOW?

The Algemene Ouderdomswet (AOW) — the General Old Age Act — is the Netherlands' universal state pension. It was introduced in 1957 and provides a basic income to every resident who reaches the AOW retirement age.

Unlike occupational pensions, the AOW is not funded — it is a pay-as-you-go system. Current workers pay AOW premiums through their payroll taxes, and that money is immediately used to pay current retirees.

The AOW is not means-tested — whether you are wealthy or poor, you receive the same amount (based on your accrual percentage and household situation).

How Is AOW Entitlement Built Up?

The 2% Per Year Rule

For every year you are insured for the AOW, you build up 2% of the full entitlement. After 50 years of insurance, you reach 100%.

You are insured for the AOW if you:

Live in the Netherlands, or
Work in the Netherlands (even if you live abroad), or
Are voluntarily insured (vrijwillige verzekering)

The insurance period runs from the year you turn 15 until you reach the AOW retirement age.

Building Up as a Resident

If you live in the Netherlands, you are automatically insured — regardless of whether you work, study, or are unemployed. Simply being a registered resident counts.

Building Up While Working Abroad

If you live abroad but work in the Netherlands (and pay Dutch social security contributions), you continue to build up AOW.

If you live in the Netherlands but work abroad, the situation depends on social security coordination rules (EU regulations or bilateral treaties).

AOW Amounts (2026)

The AOW amount is linked to the minimum wage and adjusted twice per year (January and July).

Household Situation	Gross Monthly Amount (2026)	Net Monthly Amount (approx.)
Single (alleenstaand)	~€1,350	~€1,200
Couple — both AOW age (per person)	~€930	~€850
Single parent with child under 18	~€1,350	~€1,200

These amounts assume 100% accrual (50 years insured). If you have gaps, your AOW is proportionally less.

Good to know

The AOW is a gross amount. Income tax and health insurance contributions (Zvw) are deducted. However, AOW recipients receive special tax credits (ouderenkorting and AOW-korting) that significantly reduce the effective tax rate.

The Holiday Allowance

Like salaries, the AOW includes a holiday allowance (vakantiegeld) of approximately 5.5%, paid in May. The monthly amounts above include this as a monthly average.

The AOW Age

The AOW retirement age has been gradually increasing and is now linked to life expectancy.

Year	AOW Age
2020	66 years, 4 months
2021	66 years, 4 months
2022	66 years, 7 months
2023	66 years, 10 months
2024	67 years
2025	67 years
2026	67 years
2027	67 years
2028+	Linked to life expectancy (may increase)

Starting in 2025, the AOW age increases by 1 year for every additional year of life expectancy at age 65, but with a minimum announcement period of 5 years. The government publishes projections so people can plan ahead.

Tip

Check your personal AOW age on the SVB website (svb.nl). Your exact AOW start date depends on your birth date and may differ from the table above.

AOW Gaps for Expats

This is the most critical AOW issue for internationals. If you did not live or work in the Netherlands for part of the 50-year accrual period, you have a gap (hiaat).

How Gaps Arise

Arriving after age 15: Every year from age 15 until your arrival counts as a gap
Leaving the Netherlands temporarily: Any period abroad (unless you were voluntarily insured or working for a Dutch employer)
Working abroad without Dutch social security: Even if you live in the Netherlands, working abroad under another country's social security creates a gap

The Math

Example: Maria moved from Spain to the Netherlands at age 32.

Accrual period: age 15 to 67 = 52 years maximum, but capped at 50 years
Years insured: age 32 to 67 = 35 years
AOW entitlement: 35 × 2% = 70% of the full amount
Gap: 30% (15 missing years)
Monthly AOW (single): €1,350 × 70% = €945 instead of €1,350

That is €405/month less — or approximately €4,860/year less — for the rest of her life.

The "AOW Gap" in Euros

Years Missing	AOW Percentage Lost	Monthly Shortfall (Single)	Annual Shortfall
5	10%	~€135	~€1,620
10	20%	~€270	~€3,240
15	30%	~€405	~€4,860
20	40%	~€540	~€6,480
25	50%	~€675	~€8,100

Buying Back Missing Years (Vrijwillige Verzekering)

In some cases, you can voluntarily insure yourself for the AOW to fill gaps. There are two scenarios:

1. When You First Arrive (Within 1 Year)

When you move to the Netherlands, you have 1 year from the date you become compulsorily insured to apply for voluntary AOW insurance for past years. This allows you to buy back a limited number of years.

Conditions:

You must apply to the SVB (Sociale Verzekeringsbank) within 12 months of arriving
You can buy back up to 10 years of missing coverage
The premium depends on your income — minimum ~€500/year per covered year, up to thousands

2. When You Leave the Netherlands

If you leave the Netherlands, you can apply for voluntary continued insurance (vrijwillige voortzetting) within 1 year of departure. This allows you to keep building AOW while living abroad.

Conditions:

Apply to the SVB within 12 months of ending compulsory insurance
Maximum period: 10 years
Premium: based on worldwide income, currently around 17.9% of assessable income (with a minimum)

Warning

The 1-year deadline is strict. If you miss it, you permanently lose the opportunity to voluntarily insure. Many expats discover this too late. If you have recently arrived or are planning to leave, check your options immediately.

Is Buying Back Worth It?

This depends on:

Your age — the younger you are, the more years of AOW payments you will receive, making the investment more worthwhile
The premium — based on your income, the cost can range from modest to substantial
Your other pension provision — if you have a strong occupational pension or private savings, the AOW gap may matter less
Where you will retire — if you retire abroad, tax treaties determine how the AOW is taxed

Quick calculation: Buying back 1 year costs approximately €5,000-€8,000 (varies by income). That year yields approximately €324/year in additional AOW (2% of ~€16,200 annual single rate) for the rest of your life from age 67.

If you live 20 years in retirement: €324 × 20 = €6,480 in additional AOW for a ~€5,000-€8,000 investment. Roughly break-even to moderately positive.

AOW and Your Partner

Partners Under AOW Age

If you reach the AOW age but your partner is younger than the AOW age, you do not receive a supplement (toeslag). The partner supplement was abolished in 2015. This can create a financial gap if one partner retires before the other reaches AOW age.

Cohabiting vs. Single

The AOW distinguishes between:

Single (alleenstaand): higher rate (~€1,350/month)
Cohabiting/married (samenwonend): lower rate per person (~€930/month), but the combined couple amount is higher than a single person

You are considered "cohabiting" if you share a household with another adult — not just a spouse. Sharing a home with an adult child, parent, or housemate can affect your AOW category.

Good to know

The Belastingdienst and SVB have different definitions of "partner." For AOW purposes, the SVB uses its own household assessment. You can receive the single AOW rate while living with someone if the SVB determines you do not share a joint household (gezamenlijke huishouding). The rules are detailed and fact-specific.

AOW Premiums — How It Is Funded

AOW premiums are paid by everyone under the AOW age through their Box 1 income tax. The rate is 17.9% of income up to approximately €38,098 (2026, first bracket).

Year	AOW Premium Rate	Maximum Income Subject
2024	17.9%	~€38,098
2025	17.9%	~€38,098
2026	17.9%	~€38,098

This premium is included in the Box 1 tax brackets. When you see the "combined rate" for the first bracket (36.97%), it includes income tax (9.07%) plus social insurance premiums (27.9%, of which 17.9% is AOW).

Once you reach the AOW age, you stop paying AOW premiums. This is why the first-bracket tax rate drops significantly for retirees (~18% instead of ~37%).

AOW and Emigration

If you leave the Netherlands:

Your built-up AOW entitlement is preserved. You will receive it when you reach the AOW age, regardless of where you live.
The AOW is payable worldwide — the SVB sends payments to bank accounts in most countries.
Tax treatment depends on the tax treaty between the Netherlands and your country of residence. Some treaties give the Netherlands exclusive taxing rights; others give the residence country the right.
You stop building up AOW from the day you are no longer insured (unless you opt for voluntary continued insurance).

Checking Your AOW

Mijn SVB

Create an account at svb.nl to check:

Your expected AOW start date
Your current accrual percentage
Estimated monthly amount

Mijnpensioenoverzicht.nl

This website shows all three pillars in one overview — your AOW, occupational pensions, and registered third-pillar products. Log in with DigiD.

Common Mistakes

Assuming you have full AOW — If you did not live in the Netherlands from age 15, you have gaps. Check mijnpensioenoverzicht.nl.
Missing the voluntary insurance deadline — You have only 1 year to apply after arriving or leaving. Do not delay.
Forgetting that AOW premiums stop at AOW age — This means your net income can actually increase when you start receiving AOW, because the 17.9% premium disappears.
Not accounting for the partner gap — If your partner is younger, there is no AOW supplement for the period between your AOW age and theirs.
Ignoring the household test — Living with another adult can reduce your AOW from the single rate to the cohabiting rate.
Not claiming AOW from abroad — If you move away, you must still apply to the SVB when you reach AOW age. It is not automatic for non-residents.