What is pension?

Pension is the income you receive when you reach a certain age or stop working. In the Netherlands, you can accrue a pension through the Dutch government, your employer, and financial institutions. It often consists of three parts, and sometimes four parts.

1. Part one is your AOW. This is the basic state pension that you receive from your AOW age.

2. Part two is a benefit from a pension fund. You only have this if you have worked for employers with a pension scheme.

3. Part three is self-accrued pension: Think of savings or an annuity.

4. Part four, the final part, consists of private investments, such as shares, your house, your own business, et cetera.