Netherlands has a mandatory state pension system, as well as voluntary company and individual pensions.

What are the different types of pensions in the Netherlands?

There are three different types of pensions in the Netherlands, which all combine to create what is known as one of the best pension systems in the world.

Dutch State Pension System (AOW):

The AOW (old age pension) is funded by all working residents who make tax and social security contributions.  This is similar to social security in the US.

Workplace Pension

A workplace pension can be funded by both employer and employee contributions, depending on AOW contribution amounts. This is company organized with a pension provider, similar to a 401k.  Some industries have mandatory occupational pensions under collective bargaining agreements.

Private Pension

Employees can also have a private pension funded by personal contributions.

Banks and insurance companies usually manage these for the individual.

Who is eligible for pensions in the Netherlands?

AOW pension can be claimed by... read more

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