In the Netherlands, the pension consists of three parts, namely the state pension, the employer’s pension and the pension that you accrue yourself. From when do you build up pension and when do you have to start building up a supplementary pension yourself?

Age of pension accrual 


Fifty years before you reach retirement age, the accrual of your ABC begins. You accrue 2 percent of the state pension each year, so that you have accrued exactly 100 percent of the state pension when you start your pension. If you live abroad temporarily during this period, you will miss out on part of the ABC. If this applies to you, you will receive a lower ABC benefit. You will have to supplement this yourself by saving for your pension.

From what age do you build up pension? – Employer

From what age do you build up pension? - Employer

On average, pension accrual starts via the employer at the age of 21. But this of course depends on when you start working and how much you work. Moreover, not every employer offers a pension plan.

Build your own retirement age

Build your own retirement age

It depends on your situation when you have to start building up your own pension. If you study for a long time, for example, you only have enough money later to build up a pension yourself than when you start working early. But in general the rule applies that you should start thinking about your pension from the age of 25, certainly if you do not build up any or hardly any pension through your employer.

Of course, starting later does not have to be a problem. If you build up enough through your employer, for example, you don’t have to start building yourself when you are 25. Moreover, you may prefer to wait until your income is a bit higher, so that you have more money to save for your pension. If you want to make use of the tax benefit for building up a pension in a bank savings account or in an annuity policy, you have to take into account that this may be returned to a maximum of 7 years. You can read more about this tax benefit in the ‘ Exemption from bank savings ‘.

When do you build up pension and how do you approach it?

When do you build up pension and how do you approach it?

You can build up your own pension in different ways. First of all, you can save in your own way and when it suits you in a regular savings account or in a savings deposit. You then control everything yourself and you decide when you save and how much.

Another way to take care of your pension is to pay off your mortgage and any other debts. A repaid mortgage no longer costs money every month. And if you sell the house later to start living in a smaller way, the house provides you with the capital you can live on.

Finally, you can opt for a bank savings pension or an annuity policy if you have not accrued any or too little pension through your employer in the past 7 years. A bank savings account is a savings product on which you receive interest or partial investment returns. After your retirement, the bank pays the accrued balance in installments. An annuity policy is very similar to a bank savings account, but in fact it is an insurance policy. You pay premiums, on which you receive profit distribution and investment return and sometimes a guaranteed return. After your pension you will receive periodic benefits from this insurance.