AOW (State Pension)
Definition
The basic statutory state pension paid to Dutch residents who reach the retirement age, funded from payroll taxes.
Key Takeaways
- AOW is the Dutch universal state pension paid to residents who reach age 67 (in 2026).
- You accrue 2% per year lived/worked in Netherlands (age 17–67); 50 years = 100% pension.
- Mid-2026 amount: approximately €1,582 net per month for a single person living alone.
- Funded through national insurance contributions; indexed annually to minimum wage.
Detailed Explanation
AOW (Algemene Ouderdomswet) is the Dutch state pension, a universal basic income provided by the government to all residents who reach the AOW retirement age (67 in 2026). Everyone living or working in the Netherlands automatically accrues AOW pension rights. You accrue 2% of the full pension for each year you are insured (typically from age 17 to 67), meaning 50 years of coverage results in a full 100% pension.
For mid-2026, the net monthly AOW amount for a single person living alone is approximately €1,582. Couples receive approximately 70% each of the full single amount. The AOW is funded through payroll taxes (national insurance contributions) and is indexed annually to the minimum wage. If you lived or worked outside the Netherlands during the accrual period, your AOW is reduced by 2% per missing year. The payment is managed by the SVB (Social Insurance Bank).