The systems are provided through a diversity of funding sources and are considered as fair of distribution for people living in the Netherlands.
Compared with other countries, the Netherlands is relatively better at solving the problem of population aging, because it absorbs different pension fund models and implements consistent and risk-sharing policies.
In this year the Dutch government announced that they will connect the data of receiving AOW to the national life expectancy.
If you have lived or worked outside the Netherlands, you are likely to receive a lower pension after retirement because you did not contribute to the insurance for a period of time and therefore accumulated less.
If you were born on or after April 1, 1950, you will not receive an AOW pension if your insurance period is less than one year.
There are three different types of pension funds: Private pension funds in the Netherlands are non-profit organizations and operate as foundations, and are considered independent legal entities not forming a part of any company under Dutch law.
But if a company decides to not provide a pension scheme for its employees, the government can enforce it.
In this case, the employer is no longer free to decide whether to provide a pension plan for the employee.
In corporate pension funds, some retired members may serve as employees on the board of directors.
But most funds are outsourced to external executors, typically insurance companies or specialized pension plan managers.
The size of the Fund varies greatly depending on the number of members and the accrued capital.
The investment capital managed by pension funds even exceeds the gross national product.
In this way, individuals can buy and manage pension products or investments independently, such as life insurance, stocks or real estate and related tax benefits.
When someone has a debt-free home or stocks that they sell at the moment of pension, this value can be seen as additional wealth that can be used for a better and more comfortable living standard.
[9] Early Retirement is an option, but it usually has to be self-financed until the official Dutch pension age, before which AOW payments will not be made or otherwise reduced.
only In one particular case, you can opt for Early Retirement (vergelijkbare uitkering, VUT) if the conditions are met (see SVB for details), and you may be eligible for transitional benefits.
Pensions provide employees with lifetime income protection from the date of retirement.
[12] The essence of pension is to provide security for the old age life without income through the early accumulation of work.