What is the AOW and how is it included?

The AOW (Algemene Ouderdomswet) is the Dutch flat-rate state pension, paid from the AOW age regardless of earnings. The calculator adds a fixed annual AOW amount on top of your occupational pot's drawdown so your total retirement income reflects both pillars.

How does the occupational pension build up?

Each year a percentage of your salary is contributed to your pensioenfonds and the balance grows at your chosen after-fee return; your salary itself grows at the rate you enter. This compounds over your working years to the projected pot at retirement.

What is lijfrente and can I model it?

Lijfrente is a voluntary tax-deductible annuity used to top up pension when you have a jaarruimte shortfall. You can fold it into the contribution percentage; the model treats all contributions identically and grows them to retirement.

How is the retirement income worked out?

The projected pot is annuitised over your retirement years at the in-retirement return, giving a level annual drawdown. Adding the flat AOW gives total income. It assumes the pot is fully drawn by your plan-to age.

Are these figures financial advice?

No. This is a simplified projection. It ignores AOW partner supplements, the franchise/offset in pension accrual, contribution tax relief timing and inflation indexing of the AOW. Treat it as a starting point, not advice.

Netherlands Pension & Retirement Calculator

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A Netherlands pension and retirement calculator that projects your income across the two main pillars of the Dutch system: the flat AOW state pension and your occupational pension (bedrijfstakpensioen), optionally topped up with voluntary lijfrente contributions. It shows the pot you are on track to accumulate and the sustainable yearly income it can fund.

How it works

The calculator runs two stages.

Accumulation — each working year:

contribution = salary * (contribution % / 100)
balance      = (balance + contribution) * (1 + return)
salary       = salary * (1 + salaryGrowth)

Drawdown — the projected pot is annuitised over your retirement years, then the flat AOW is added:

potIncome = pot * r / (1 - (1 + r)^-retireYears)     (r = in-retirement return)
total     = potIncome + AOW

The AOW is paid from the state AOW age for life; here it is modelled as a fixed annual amount layered on top of your occupational drawdown.

Example and notes

A 30-year-old earning 55,000 EUR who contributes 18% to a pensioenfonds with 25,000 EUR already accrued, growing at 5%, can build a sizeable pot by AOW age 67. Annuitised over 23 years at 3% plus the flat AOW, this becomes the projected total annual income.

This model ignores the AOW partner supplement, the pension franchise/offset, and indexation. All figures are computed locally in your browser and are not financial advice.