What is the AOW-franchise?

The AOW-franchise is the part of your income on which you may not build supplementary pension, because you will receive state AOW over it later.

When calculating your jaarruimte you first deduct the franchise from your gross income; you then take 30% of the remainder, the premiegrondslag. For lijfrente the AOW-franchise is set at €19,172 in 2026 (it was €18,475 in 2025). Calculate your room with the jaarruimte calculator.