The General Old Age Pensions Act (AOW) is an important basic provision for everyone who reaches the AOW age of 67. However, there are many misunderstandings about how the AOW works and what you can expect. In this article, we separate the facts from the fables, so that you know exactly what you can expect.
Fact or fiction: You automatically receive AOW from your retirement age
Myth: You must apply for your AOW yourself at the Social Insurance Bank (SVB). You can arrange this four months before your AOW age, but not earlier. You will receive a letter from the SVB about this approximately four months before your AOW age. If you do not apply for the benefit on time, you run the risk of being paid later.
Fact or fiction: You do not always receive the full AOW amount
Myth: In 2025, you will build up AOW from the age of 17 until your AOW age. For every year that you do not live in the Netherlands, you will miss 2% of your full AOW benefit. For example, if you have lived abroad for ten years, you will receive 20% less AOW. It is possible, under certain conditions, to take out voluntary insurance for this.
Fact or fiction: AOW retirement age is fixed
Myth: The AOW age is partly linked to life expectancy and can therefore change. At the moment, the AOW age is 2025 years in 67, but this can be adjusted again in the future. However, the AOW age cannot decrease. Look here for more information.
Fact or fiction: You are allowed to earn extra income in addition to your AOW
Fact: You may earn unlimited additional income in addition to your AOW. However, additional income may affect other allowances or taxes that you receive. Read more about this in our blog earn extra during your retirement.
Fact or fiction: The AOW is the same for everyone
Myth: The amount of your AOW depends on your living situation. Do you live together or are you single? Singles receive a higher benefit because they cannot share the costs of living.
How do you ensure good preparation?
It is important to prepare yourself for your pension and AOW in time. Check your accrued rights via MijnSVB.nl and think about what your additional income will be in addition to the AOW. Saving, investing or an additional pension can help you enjoy your old age more comfortably. Look at the Rijksoverheid for additional information about your AOW.
Conclusion
There are many facts and myths about the AOW, but being well-informed is the key to a carefree old age. Do you have questions about your situation? Contact the Social Insurance Bank or consult a financial advisor.
Want to know more?
Do you have questions about your AOW or would you like more information about how to prepare for your pension? Please feel free to contact us. Our Service Center is available every working day from 8:30 to 17:00 via sc@unie.nl or 0345 851 963. We are happy to help you.
