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Some pensioners are also required to make contributions, albiet at a reduced rate.
How much of the state Dutch pension fund you'll receive depends upon a number of factors, including how long you have lived and been insured in the Netherlands, as well as your living arrangements.Like most countries, pension income is taxed in the Netherlands.Certain pensioners must also pay national insurance, while all must make health insurance contributions (5.4 percent of gross AOW in 2017).However, tax rates are reduced for pensioners and the amount you pay will depend on your personal circumstances.Read more about the Dutch tax system and Dutch income tax rates.In this guide from Expat Pension Holland, you’ll find essential information for planning a Dutch retirement, including how to claim pensions in the Netherlands, eligibility for Dutch pensions, Dutch pension rates, the pension age in the Netherlands, tax implications and healthcare for foreigners.
The Dutch pension system is made up of three tightly connected pillars, which all contribute to your Dutch pension fund.
The Dutch statistic authority reported in 2017 that the average pensioner in the Netherlands had a disposable income of some EUR 23,000 in 2015, or EUR 40,000 for couples.
Only around 4 percent of pensioners were reported as having a 'very low income'.
However, you may be eligible to bridging benefits if you opt for early retirement (VUT) if you meet the conditions. Similarly you can also choose to defer retiring in the Netherlands and claiming your Dutch pension.
Working past the Dutch retirement age can increase your Dutch pension benefits and allowance.
Interference with one pillar almost always has consequences for the other two.