In short: The AOW is the state basic pension (pillar 1), with an AOW age of 67 in 2026 and roughly € 1,662 gross per month for a single person and € 1,139 per person for married or cohabiting people. On top comes the employer pension (pillar 2, a contribution scheme since the Future Pensions Act) and, optionally, a lijfrente annuity you arrange yourself (pillar 3), whose contributions are deductible within your annual margin. Free savings and investments fall under box 3, where in 2026 a tax-free allowance of € 59,357 per person applies. This is educational information, not tax or financial advice; check your situation with an adviser or the official source.
Pensions & Saving in the Netherlands: AOW, pension and saving
In the Netherlands your retirement income rests on three pillars: the state AOW, the pension you build through your employer, and what you save yourself. On top of that you save or invest free wealth in box 3. This chapter calmly explains how these parts fit together, so you know where you stand and what you can steer yourself. All amounts are for 2026; always check concrete figures with the official source.
Pillar 1 — AOW: the state basic pension. You build it up automatically during the years you live or work in the Netherlands. In 2026 the AOW age is 67.
Pillar 2 — employer pension: you and your employer both pay premiums through your job. Under the Future Pensions Act it is now a contribution scheme: the premium is invested and your pension depends on the result.
Pillar 3 — lijfrente (annuity): build extra yourself with a tax advantage, especially useful if you have a ‚pension gap’ (self-employed or limited employer scheme). Contributions are deductible within your annual margin.
Free saving and investing — box 3: everything above the tax-free allowance is taxed. This is your flexible buffer, separate from your pension.
What matters
The Dutch system spreads your retirement across three pillars. The AOW (pillar 1) is a state basic pension: you build up a slice for every year you live or work in the Netherlands, and in 2026 the payout starts at age 67. It is a floor, not a full income — roughly € 1,662 gross per month for a single person and € 1,139 per person for married or cohabiting people.
The employer pension (pillar 2) tops this up. You and your employer pay premiums together. Under the Future Pensions Act (in force since 2023, fully implemented by 2028 at the latest) this is a contribution scheme: the premium is invested and your eventual pension depends on the investment result. Not everyone has such a scheme — the self-employed, for example, build nothing here.
The third pillar is your own supplement: a lijfrente (annuity). Contributions are deductible in box 1 within your ‚annual margin’ (jaarruimte), and you only pay tax once the payout begins. In 2026 the annual margin is 30% of the contribution base (your income minus the AOW threshold of € 19,172), up to a maximum of € 35,589. Unused margin from the past ten years can still be used via the reservation margin, up to € 42,753.
Separate from your pension is free saving and investing in box 3. In 2026 the tax-free allowance is € 59,357 per person. Above that, the tax authority taxes a notional return (around 1.28% for savings, 6.00% for investments) at 36%. Anyone who can show their actual return was lower may use the counter-evidence rule. This chapter is meant as explanation, not tax or investment advice.
ExampleLijfrente example, as of 2026. Suppose your gross income last year was € 60,000. Contribution base = € 60,000 − € 19,172 (AOW threshold) = € 40,828. Annual margin = 30% × € 40,828 ≈ € 12,250 per year, or about € 1,020 per month you can pay into a lijfrente tax-efficiently (simplified, without correction for pension already accrued).
Use Kontoo’s FIRE calculator to work out how much to set aside yourself to top up your AOW and pension. You can find your own AOW and pension build-up at mijnpensioenoverzicht.nl.
In depth
Why the AOW age keeps rising
The AOW age is linked to life expectancy. In 2026 it is 67; from 2028 it rises to 67 years and 3 months. The later you were born, the more likely your AOW starts later. Check your personal AOW date at svb.nl.
Using annual and reservation margin wisely
Under the Future Pensions Act the annual margin was raised to 30% of the contribution base and you can make up unused margin from up to ten years back (reservation margin, max € 42,753 in 2026). Use your reservation margin first, otherwise old margin expires unused. The tax authority offers a calculation tool for this.
Box 3 and the counter-evidence rule
Box 3 taxes wealth via notional returns, not your actual profit. Following court cases on this, the counter-evidence rule lets you prove your real return was lower and pay tax only on that. This is a moving file — check the current rules with the tax authority before filing your return.
Checklist
You know that the AOW (pillar 1) is a state basic pension, with an AOW age of 67 in 2026.
You understand that the employer pension (pillar 2) is a contribution scheme since the Future Pensions Act.
You can roughly estimate your annual margin for a lijfrente (pillar 3): 30% of income above the AOW threshold.
You know that savings and investments are only taxed above € 59,357 per person in box 3 (2026).
Common myths
Myth: ‚The AOW is enough to live on.’
Reality: The AOW is meant as a floor, not a full income. For most people a supplement via employer pension or a personal lijfrente is needed to maintain their standard of living.
Myth: ‚You always pay tax on savings.’
Reality: You only enter box 3 above the tax-free allowance of € 59,357 per person (2026). Below that there is no wealth tax.
Frequently asked questions
How much AOW will I get in 2026?
Gross per month roughly € 1,662 for a single person and € 1,139 per person for married or cohabiting people (as of 2026, excluding holiday allowance). The exact amount depends on your build-up years and is adjusted twice a year; check svb.nl for your own situation.
What is the difference between the AOW age and the pension age?
The AOW age is the statutory moment the state starts paying your AOW — in 2026 that is 67. The pension age of your employer pension may differ; you can sometimes start that pension earlier or later.
Do I have to pay tax on my savings?
Only on the part above the tax-free allowance of € 59,357 per person (€ 118,714 with a fiscal partner) in 2026. Box 3 tax uses notional returns; if you can show your actual return was lower, the counter-evidence rule lets you be taxed on that lower amount.
