What is Factor A?

Factor A is the amount by which your pension has grown in a specific year, if you are accruing pension through an employer. This figure indicates how much pension accretion you have realised that year and is stated on the Uniform Pension Overview (UPO) that you receive annually from your pension provider.

Factor A is important for calculating your annual margin (jaarruimte). If you have accrued a pension, Factor A is used to reduce the annual margin, as you have already built up a pension through your employer. The higher the Factor A, the smaller the extra annual margin that you can still utilise for tax-free pension accrual.

You must multiply Factor A by 6.27 to get the total deduction.