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Your annual allowance benefit, explained in 1 minute
One in three Dutch people has a pension gap. Close yours with tax advantages using your annual allowance. Watch the video to learn how.
What is it?
What is annual allowance?
Your annual allowance is the amount you can use each year to build additional pension savings with tax advantages. In 2026, you can contribute up to 30% of your contribution base (your income minus a fixed threshold), up to a maximum of €35,588. Contributions are deductible when you file your tax return, meaning you pay less tax now while building your future pension in a smart, tax-efficient way.
How does it work?
This is how annual allowance works in 2026
Calculating your annual allowance is straightforward. Take 30% of your contribution base (your income minus the AOW franchise — the fixed threshold of €19,172 in 2026), capped at €35,588, and subtract any pension accrual you already have.
What remains is your annual allowance: the amount you can contribute this year with tax benefits.
With Vive, you don’t have to calculate this yourself. Simply enter your details in our calculator, and we’ll do the rest.
Who should calculate their annual allowance?
Your annual allowance applies to anyone who wants to build a pension in a tax-efficient way. It’s especially relevant if you’re not building up a pension — or not enough — through your work.
As a self-employed professional
As a self-employed professional, you don’t build up a pension through an employer. This makes your annual allowance the most important tool for building your pension in a tax-efficient way. In many cases, you have access to the full annual allowance — which can be as much as €35,588 in 2026. The advantage? You decide when to contribute with Vive. Had a strong quarter? Contribute more. A quieter period? Skip a month. This flexibility is a perfect fit for entrepreneurial life.
As a Director-Owner
As a director-owner, you know your income can fluctuate from year to year. Your annual allowance gives you the flexibility to respond to these changes. You can contribute your full allowance in one go in December, or spread contributions throughout the year. In addition, you can still use unused annual allowance from the past ten years through your carryforward allowance. Ideal for years in which you have more financial room to build additional pension savings.
As an employee
Annual allowance can also be relevant if you’re an employee. You may already be building a pension through your employer, but it might not be enough to support the lifestyle you want later on. Or perhaps you work part-time and want to make additional contributions. In that case, you can use your remaining annual allowance to build extra pension savings with tax benefits. You can see how much pension you accrue each year in your Uniform Pension Overview (UPO), which you receive annually from your pension provider. Check this first to determine how much annual allowance you still have available.
Discover your 2026 Annual Allowance
Including the tax benefits.
Would you like to learn more about your annual allowance and the benefits of pension investing? Schedule a free consultation with one of our experts.
* For the indicative tax refund, we use the 2025 rates. These are bracket 1: Up to €38,441, a rate of 35.82%; bracket 2: Between €38,441 and €76,817, a rate of 37.48%; bracket 3: For incomes above €76,817, a rate of 49.50%. The actual amount you get back depends on your personal situation. Terms apply.
What does annual allowance consists of?
Your pension overview is ready. Learn how your annual allowance is calculated and get started fully prepared.
Aggregate income
Your aggregate income is the total of all your income sources. This includes your salary or business profits, as well as income from a second job, freelance work, renting out a room or holiday home, and income from a substantial shareholding. All these amounts are added together to determine your total aggregate income. This forms the starting point for calculating your annual allowance. We always use gross amounts — your income before tax is deducted. For the 2026 annual allowance, income from 2025 is used.
Factor A
Factor A is the amount of pension you accrue through your employer in a given year. For most freelancers and entrepreneurs, this amount is €0, as they do not have an employer providing a pension.
If you are (also) employed, you can find your Factor A on your Uniform Pension Overview (UPO) or on the website of your pension provider(s).
Factor A is used to calculate your annual allowance. The amount is multiplied by 6.25 (the statutory multiplier), and the result is deducted from your annual allowance. This reflects the pension you are already building through employment.
It’s important that your Factor A is correct. If you deduct too little, you may exceed your annual allowance and will not receive tax benefits on the excess amount.
You can find an overview of your pension accrual at: www.mijnpensioenoverzicht.nl
Calculation example
Aggregate income
This is the gross annual income, plus bonus and other arrangements.
€50,000, -
/year
AOW franchise
The amount over which no pension is accrued. After all, state pension is already being accrued over this by the government.
- €19,172, -
/month
Factor A
Pension growth in a second pillar pension. This growth can be found at the UPO. Multiply the growth by: 6.27
- €0, -
/month
Premium basis
Aggregate income - AOW Franchise - Factor A = Contribution basis. The number over which the annual allowance is calculated.
€30,828, -
/year
Annual allowance%
For this year, the annual allowance% of the Premium Base was set to:
* 30%
/year
Annual space
The total amount of remaining annual space. This number can be invested in a third pillar pension account.
€9,248, -
Why choose pension accrual with Vive?
We make building a pension simple. No hassle with complex calculations — just clear insight into how much you can contribute and what it delivers.
Real-time insight
With traditional pension providers, you receive a letter once a year — and often it’s hard to understand. With Vive, you can always see your current pension savings in the app. Just like checking your bank account, you can check your pension at any time. See what you’ve invested, what it’s worth today, your expected pension, and the returns you’ve achieved.
Professionally invested
Your money isn’t just parked somewhere. We invest globally in index funds — the same funds used by major pension funds. No expensive fund managers trying to beat the market, just broad market exposure at low cost. In addition to a service fee, you pay only 0.35% in annual management costs — a fraction of what traditional providers charge.
100% for your next of kin
An important difference with traditional pension and many other pension providers is that it is one hundred percent yours. In the event of death, all the accumulated assets go to your partner or children. No insurer that holds most of it, no fine print leaving your family empty-handed. Everything you've built stays in the family.
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Frequently Asked Questions
Everything you need. In one app. In one place. All goals and strategies, always at hand.
What is pension investing?
Pension investing means building a pension by investing in equities, bonds and investment funds, rather than only saving. The aim is extra capital alongside your AOW and any collective scheme.
Over the long term investing generally yields more than saving, but there is risk too: the value can fall. Because your horizon is long, there is time to absorb fluctuations. Read what pension investing is or see pension investing at Vive.
How does pension investing work?
You contribute to a lijfrente account and that money is invested until your retirement date. In return there are three tax advantages:
- Your contribution is deductible from your taxable income, within your jaarruimte and reserveringsruimte.
- The capital built up does not fall into box 3 during the accrual phase.
- You only pay income tax once the benefit starts, often at a lower rate.
The trade-off: the money is fiscally locked until your retirement date. Calculate your room with the jaarruimte calculator or read how pension investing works.
What are the benefits of pension investing?
Four advantages over ordinary saving or investing:
- Deduction. Your contribution is deductible from your taxable income within your jaarruimte and reserveringsruimte.
- No box 3. During the accrual phase your pension capital does not count towards wealth tax.
- Deferred taxation. You only pay tax once the benefit starts, often at a lower rate.
- Return. Over a long horizon, investing generally offers more growth potential than saving.
Against that, your money is locked until your retirement date and the value can fall. Also read the drawbacks of pension investing.
What are the risks of pension investing?
There are three kinds of risk to take into account:
- Market risk. The value of your investments can fall. You can lose part or all of your contribution and there is no guaranteed outcome.
- Lock-in risk. Your money is fiscally locked until your retirement date. Withdrawing earlier costs you the deduction plus 20% revisierente.
- Fiscal risk. Rules and rates can change; you build up under today's rules.
Vive matches investment risk to your situation and reduces it towards your retirement date, but that does not remove risk. Read the drawbacks of pension investing and the investment policy.
What is the difference between pension investing and regular investing?
The investments can be similar; the difference is in tax treatment and access.
With pension investing your contribution is deductible within your jaarruimte and your capital sits outside box 3 during accrual. In return the money is locked until your retirement date. With regular investing you can always access it, but you miss the tax advantage and your capital counts in box 3. See pension investing and goal-based investing.
How do I calculate my jaarruimte for pension and enter it in the tax declaration?
Your jaarruimte is 30% of your premiegrondslag: last year's gross income minus the AOW-franchise (€19,172 in 2026), minus your pension accrual via an employer (factor A × 6.27). In 2026 the jaarruimte is capped at €35,589. Work it out in a few steps with the jaarruimte calculator.
In your tax return you enter the contribution under 'uitgaven voor inkomensvoorzieningen'. Vive provides an annual statement with the exact amount you may declare. Full explanation in tax returns and pension investing.
Please note:
Investing carries risks
Investing offers opportunities, but you may lose part or all of your investment. That’s why it’s important to understand the associated risks in advance. More information can be found in the Investment Policy. Vive is a licensed wealth manager.