Dutch pension system! This is what you need to know.

When you work in the Netherlands, your automatically save up for a pension threw your salary. Your employer is obligated to pay a certain amount to the pension fund that they chose for the whole company. Pensioenvergelijken.net will explain.

What pension fund do i have?

Basically there are two kinds of pension funds that you can build your pension with automatically. 1 is the fund that is the pension fund for the entire branch of your field of work. Or if this does not exist the company that you work for has to choose a fund for all employees of the companie. Most people however fall in the first category.For example everyone who works in healthcare builds up a pension with pension fund PFZW or if you have a governmental job than ABP is your pension fund. People who work in the metal industry are usually with PME.

How does my entire pension build up?

The dutch pension system is built for every worker on three pillars.

1. AOW (Algemene ouderdom wet)
2. Additional pension
3. Extra income for yourself

AOW
The first pillar is called AOW, and everyone who lives in the Netherlands starting from the age of 16 builds up AOW. For every year you live in the country you get about 2% of your AOW designed to you when you reach your AOW age. This is the age when the government pays you monthly the AOW amount that you collected. So this pillar has nothing to do with work, just living in the country. When you exit the country for example 3 years and come back to live here until your AOW age. You will basically get 94% of the AOW amount that was saved for you.

Additional pension
The second pillar is called additional pension, this is the amount that you save up at a pension fund threw your working years. Your employer pays a certain percentage to the fund depending on your wage and wage growth over the years. If you earn a lot, you will pay more. But will also get more in the end. When you reach the time that you want to go with your pension. You can negotiate with your fund about the monthly payment. The longer you wait with this, the more you will get. The pension fund will invest most likely the way you tell them to invest. Defensively, moderate or offensively. This is your own choice, and what will get you the most. Is difficult to predict.

Your own wealth
The last pillar is what you can do yourself to make your pension years more comfortable. Do you have savings, a house you can sell or valuable jewellery, antiques, art or stocks. This option is up to you. But also contributes to your pension.

Know what you built up already

There is an easy website from the dutch government, that you can use to find out. If and where you built up pension. Because if you switched jobs. You most likely have multiple pension pots. This page will give you more information. Information is in dutch.