What does an AOW gap mean?
An AOW gap occurs when you have not been insured in the Netherlands for the full 50 years for the AOW. For each year missing, your AOW benefit is reduced by 2%. This can lead to a significantly lower income, especially if you have lived abroad for a long time.
Reasons for an AOW gap
| Reason | Impact |
|---|---|
| Residence abroad | No AOW insurance |
| Work abroad | Usually no AOW accrual |
| Late immigration | Fewer years for accrual |
| Secondment without coverage | Missing accrual years |
How do you calculate an AOW gap?
Practical example
Suppose you have lived and worked abroad for 12 years:
- Accrual: 38 years instead of 50 years
- Reduction: 12 x 2% = 24%
- AOW benefit: 76% of the full amount
Reducing an AOW gap
There are ways to limit an AOW gap:
- Voluntary contribution: Pay AOW premium during residence abroad
- Retrospective purchase: Insure up to 10 years retrospectively (expensive)
- Extra support: Via the AIO scheme (supplementary income support for the elderly)
Bridging to AOW age
If you stop working before your AOW age, there are options:
- Early pension: Via your pension fund (with lower benefit)
- RVU scheme: Early retirement via your employer
- Personal assets: Use of savings or home equity
- IOW benefit: For unemployed persons after age 60 upon expiry of unemployment benefits
AIO support in Utrecht
The AIO (Supplementary Income Provision for the Elderly) helps supplement your income to the minimum if:
- You are entitled to AOW
- Your income is below the social minimum
- Your assets remain below the permitted limit
Can I pay AOW premium from abroad?
Yes, via the SVB you can voluntarily insure yourself. This usually needs to be arranged within one year after your departure.
Is it worth buying back AOW years?
This depends on your situation and the costs. The premiums are high, so have a calculation made by an expert.
Is AIO automatically granted for low AOW?
No, you must submit an application yourself to the SVB.
Frequently asked questions about AOW in Utrecht
How do I find out if I have an AOW gap?
If you have not been insured in the Netherlands for 50 years, you probably have an AOW gap. Check your accrual via MijnSVB.nl or request an overview from the SVB. Each missed year reduces your benefit by 2%.
What does it cost to buy back AOW years?
The costs vary depending on your age and the number of years. It can involve substantial amounts, based on the minimum wage. Request a quote from the SVB.
Can I prevent an AOW gap upon emigration?
Yes, by voluntarily insuring yourself with the SVB within one year after departure. You then pay premium to continue your accrual.
How do I apply for AIO in Utrecht?
Submit an application to the SVB with proof of your low income and limited assets. After approval, you receive a monthly supplement.
What are the pros and cons of early retirement?
Early retirement gives freedom to stop earlier, but your monthly benefit is often lower. Consider this carefully with an advisor.
Legal Assistance in Utrecht
For questions or legal support regarding AOW and bridging arrangements, you can go to:
- District Court Midden-Nederland: Vrouwe Justitiaplein 1, Utrecht
- Juridisch Loket Utrecht: Catharijnesingel 55, Utrecht