Tax after you reach AOW age
Your income tax rate drops once you reach AOW age. See how the Belastingdienst taxes your AOW and pension, with the 2026 brackets.
Retirement in the Netherlands
Your guide to the Dutch pension system, the AOW age and what changes when you retire. We point you to the page that answers your situation. This guide also helps if your pension started abroad or you retire elsewhere.
Written by
Menno van der MadeHead of Tax - Tax Consultant
Reviewed by
Victor van GilseTax Consultant
Updated 6 August 2026
How is this page fact-checked?
We check every page for accuracy, timeliness and relevance. Each one is written and reviewed by our qualified advisors, so the information stays clear, complete and correct.
Fact-checked against
Read our editorial standards- svb.nl (the Dutch social insurance bank)
- rijksoverheid.nl (the Dutch government)
- belastingdienst.nl (the Dutch Tax Administration)
Updated 6 August 2026
The pension system
How retirement works in the Netherlands
The Dutch pension system stands on three pillars. Pillar 1 is the AOW, the state pension the SVB (the Dutch social insurance bank) pays from your AOW age. Pillar 2 is the pension you build through an employer. Pillar 3 is what you arrange yourself, such as a lijfrente (a private annuity) or bank savings.
Your AOW age is 67 in both 2026 and 2027. For 2028 it rises to 67 years and 3 months. Figures from svb.nl and belastingdienst.nl, consulted 6 August 2026.
Once you reach your AOW age, you stop paying AOW premiums. Your first income tax bracket then drops to 17.85%. Below the AOW age that first bracket is 35.75%. Figures from svb.nl and belastingdienst.nl, consulted 6 August 2026. Both percentages apply to your first tax bracket only. Dutch tax law calls this first bracket Box 1.
A full single AOW is €1,662.16 gross a month from July 2026. For partners living together it is €1,139.39 gross each. A full AOW takes fifty years of living or working in the Netherlands. Years spent abroad lower your own amount. You build 2% of a full AOW for each year in the Netherlands.
These figures point you in the right direction. Every situation below links to the page that works out your own numbers. We explain the tax relief on lijfrente premiums in our annuity premium deduction guide.
State and work
Your state pension and your workplace pension
Start here if you are approaching your AOW age or have already reached it. Your AOW and your workplace pension form the base of your retirement income. This is also where the tax on that income sits. The card below takes you to the details that fit you. Do you play professional football? We explain your pension fund on our footballers' pension page. Want to stop working early? Your advisor works out your AOW gap with you.
Beyond the basics
Grow your pension, at home or abroad
Choose this path if you want more than the basics. Maybe you want a private top-up, a shortfall to close or a pension abroad. Each card below opens the page with the details. Do you hold a US retirement account such as a Roth IRA? We cover that on our Roth IRA page.
Top up with a lijfrente
A private annuity or lijfrente lets you build extra pension with tax relief. We show when it fits and how the yearly room works.
Close a pension shortfall
A pension shortfall means you are building less than you will need later. We help you see the size of it and how to close it.
Pensions across borders
Built a pension abroad, or are you retiring outside the Netherlands? Tax treaties decide who taxes what. We explain where to get yours checked.
“You do not have to work out everything about retirement in advance. I tell you what matters for your situation and explain it in plain English. After that you can read up on the details at your own pace.”
Menno van der Made
Tax advisor
Pension specialistsEnglish and Dutch
Your advisor
Not sure where you fit?
You do not have to figure this out alone. Tell Menno what is going on and together you look at what matters for you. In one conversation Menno maps your whole situation: your pension, your tax, your wealth and your home.
Frequently asked
Retirement in the Netherlands, answered
Five quick questions about retiring in the Netherlands. Your question not here? Ask your advisor
What is the AOW age in the Netherlands?
The AOW age is 67 in 2026 and 2027. In 2028 it is 67 years and 3 months. The SVB confirms your exact date, based on your birth date.
What changes about my tax when I reach the AOW age?
At your AOW age you no longer pay the AOW premium, which lowers your first tax bracket. See the exact rates for your year on retirement income. This applies to the first Box 1 bracket only.
Do I pay Dutch tax on a pension from abroad?
It depends on the tax treaty between the Netherlands and the other country. The treaty decides which country taxes each pension. Our guide to foreign pensions walks you through it.
How much AOW will I get?
Your AOW depends on how long you lived or worked in the Netherlands. You build 2% for each of those years, up to a full AOW. Time spent abroad can lower it, and the SVB shows your own amount.
Where do I start if I am close to retiring?
Start with the situation that fits you: reaching AOW age, a pension abroad, a shortfall to close, or a private top-up. Each links to a page that goes deeper. Still unsure? Book your free call.
Retirement
One conversation. A clear plan.
Not sure which situation fits you? Talk it through with an advisor. We map your situation and help you work out what matters for you. Free of charge, with no obligation. Pension advice is provided by our associated company A&H Finance. They advise you, arrange the pension and invoice you.
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