The Netherlands has a high-quality, sound and widely accessible pension system which is viewed as a model by many other European countries. The retirement age in the Netherlands is 65 years. The income of people aged 65 years and over consists mainly of state old-age pension and a supplementary pension from a previous job or jobs.

The Dutch pension system is based on three pillars:

• the state old-age pension scheme
• the supplementary pension scheme operated by the employer
•  any amounts set aside by employees for their old age 

From 2010, hundreds of thousands of Dutch people will claim the state old-age pension and any accumulated supplementary pension. In 2030, there will be four million people aged 65 and over in the country. How can we keep the provision of old age pensions affordable in the future? It is an issue that is preoccupying the nation. If more elderly people remain in work for a longer period, the pressure on the working population to pay for welfare benefits will be more evenly distributed, according to the government. Taking early retirement will therefore no longer be a fiscal advantage. On 22 February 2005, the early retirement bill was passed by the government. These regulations will take effect on 1 January 2006.
With all these changes, it would be wise to make sure you are sufficiently aware of the (reformed) pension scheme.

State old-age pension amounts as at 1 January 2005:

• State old-age pension Gross per month Gross holiday allowance per month
  Married people €631.81 €30.53
• Married people with a maximum allowance
  (partner under the age of 65) €1,263.62 €61.06
  Maximum allowance €631.81
• Single people €924.86 €42.74
  Single people with a child under the age of 18 €1,143.92 €54.95

Source: European Union
© European Communities, 1995-2006
Reproduction is authorised.

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