Understanding the Dutch AOW: What Highly Skilled Migrants Need to Know
When you move to the Netherlands as a highly skilled migrant, there’s a lot to arrange from residence permits to health insurance. But one topic that often gets overlooked is your AOW (Algemene Ouderdomswet), the Dutch state pension. Whether you plan to stay for a few years or build a long-term career here, it’s worth understanding how the AOW works and what it means for you.
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What is the AOW?
The AOW is the Dutch state pension, a basic income provided by the government once you reach the official retirement age (currently linked to life expectancy, around 67 years). Every person who lives or works in the Netherlands automatically builds up AOW rights through the national insurance system (SVB).
You don’t need to make a separate payment; your contribution is included in the taxes you already pay through your salary.
How Do You Build Up AOW?
You build up 2% of your full AOW pension for each year you live or work in the Netherlands between the ages of 17 and the official AOW age. That means you need 50 years of residence or insured work to receive the full pension.
Example:
You live and work in the Netherlands for 10 years.
You’ll receive 20% of the full AOW when you reach retirement age.
If you move to another country before that, your AOW rights remain valid for those years, but you will not build up any more unless you remain insured in the Dutch system.
What If You’re a Temporary Resident?
Highly skilled migrants and orientation-year graduates often work in the Netherlands for shorter periods, sometimes two to five years. Even during that time, you still build up AOW for those years. When you leave, the Sociale Verzekeringsbank (SVB) keeps your record, and you can apply for your partial AOW pension when you reach retirement age, wherever you live.
If you later move back to the Netherlands, your build-up continues automatically.
Can You Receive AOW Abroad?
Yes, but only under certain conditions. The Netherlands has social security agreements with many countries, including those within the EU, EEA, and several others like the U.S., India, and Japan. These agreements make it possible to receive your Dutch AOW even if you retire outside the Netherlands.
If your home country does not have such an agreement, you might still receive AOW, but with more restrictions.
How Does AOW Combine with Company or Private Pensions?
Most employers in the Netherlands offer an additional company pension (pensioenfonds or private insurer), which supplements your AOW. Highly skilled migrants often contribute to both systems:
AOW: the national base pension, built through residence/work.
Company pension: based on your salary and employment contract.
It’s essential to keep your pension statements and SVB records updated, especially if you switch employers or countries.
Can You Voluntarily Continue AOW Contributions?
If you leave the Netherlands but want to keep building AOW, you can apply for voluntary insurance (vrijwillige verzekering) with the SVB within one year after leaving. This is especially useful if you expect to return later or want to avoid gaps in your AOW build-up.
Why This Matters for Highly Skilled Migrants
Even if you’re only here temporarily, the Dutch system ensures your time counts toward your retirement security. Knowing your AOW rights helps you:
Avoid losing entitlements when moving between countries.
Plan for your long-term financial future.
Combine AOW with your home country’s pension system.
About BlueStone
BlueStone helps international professionals and Dutch employers navigate everything related to highly skilled migrants, from visa and payroll arrangements to tax and pension questions. With a personal and practical approach, BlueStone makes working and living in the Netherlands easier for both talent and employers.
