Dutch pensions rank world's best for a fourth year: what the AOW, workplace pensions and Wtp mean if you moved here later

The Dutch pension system has been named the world's best again. In the 2026 Global Pension Index, published on 20 October 2026, the Netherlands kept first place for the fourth year in a row. Expat media and Dutch newspapers covered it widely.

For anyone who moved here from abroad, the ranking matters less than a simpler question: what will I actually receive from this system? The Dutch state pension, the AOW (Algemene Ouderdomswet, General Old Age Pensions Act), builds up at 2% of the full amount for every year you are insured. If you arrive at 30 and stay until retirement, you still will not reach 100%.

This guide starts from IamExpat's report (22 October 2026) and compares it with coverage in DutchReview, Expatica, DutchNews, NL Times, ACCESS, Xpat.nl and The Hague International Centre. Figures were checked against the index publisher (CFA Institute), the pension agency SVB (Sociale Verzekeringsbank), the Dutch government (Rijksoverheid), the central bank DNB and the European Commission. Everything was checked on 22 October 2026.

This is a general explanation of how the system works, not financial advice. It does not recommend any investment or product. For your own figures and choices, check with the SVB, your pension fund, or a qualified pension or tax adviser.

Main sources for this guide

• CFA Institute, "Marsh CFA Institute Global Pension Index 2026" (20 October 2026): scores and method
• SVB, "AOW pension amounts" and "Building up an AOW pension": amounts from July 2026 and the 2% rule
• Rijksoverheid, "AOW-leeftijd 2025-2031": the fixed AOW ages
• Rijksoverheid, "Belangrijke periode voor pensioentransitie breekt aan" (2 July 2026): progress of the Wtp transition
• European Commission, "State pensions abroad" (Your Europe): how EU countries coordinate pensions

1. What happened: first place in the Global Pension Index again

The headline comes from an annual international comparison of retirement systems. It is published every October and reliably makes the Dutch news.

The 2026 results

The index is now called the "Marsh CFA Institute Global Pension Index 2026". Until last year it carried the Mercer name. IPE reports that the change follows Mercer's move under the unified Marsh brand.

According to the CFA Institute, this is the 18th edition. It compares 55 retirement income systems, covering about 66% of the world's population. The Netherlands scored 85.8, up from 85.4 in 2025.

All six earned the top A grade, which requires a score above 80. Australia entered the A group for the first time in 2026. Denmark moved up to second place, swapping places with Iceland.

What the index measures

The overall score is a weighted average of three sub-indices. Adequacy, which looks at benefit levels, counts for 40%. Sustainability, which asks whether the system can last, counts for 35%. Integrity, which covers regulation and governance, counts for 25%. More than 50 indicators feed into them.

The sub-index scores are as reported by European Pensions. IPE notes that the Dutch sustainability score dipped slightly in 2026. From this edition, adequacy also takes into account retirement income at age 80.

A national score, not a personal forecast

The report warns against treating small differences in score as proof that one system is superior. More importantly for residents, the index rates a country's system as a whole. It says nothing about what any individual will receive.

For people who moved here as adults, the gap between the national score and personal outcome can be large, because of how the AOW is built up.

2. The big picture: three pillars

Dutch retirement income comes from three separate pillars, each with its own logic. The Hague International Centre's pension guide uses the same structure, as do most official explanations.

The first pillar is a basic floor. The second pillar is where most of the extra income comes from. The third pillar fills gaps for people without, or with too little, workplace pension.

Pillar 1: the AOW depends on years, not salary

The AOW is not linked to what you earned. It depends on how many years you were insured under the Dutch national insurance schemes (volksverzekeringen). In general, you are insured automatically if you live in the Netherlands, or if you work here and pay Dutch wage tax. A partner who does not work is also insured, as long as they live here.

The amount is linked to the minimum wage and depends on whether you live alone or with another adult. Two people with the same number of insured years get the same AOW, whatever their salaries were.

Pillar 2: workplace pensions drive the ranking

Workplace pensions are built up through your employer, usually in a pension fund (pensioenfonds) or with an insurer. Expatica reports that around 90% of employers offer a scheme. In many sectors, participation is compulsory; the civil service and education fund ABP is the best-known example.

This pillar is the main reason the Netherlands scores so highly. Coverage is wide and the funds hold large assets. The flip side is simple: if you are not in a workplace scheme, the index score overstates what you can expect.

Pillar 3: private savings you choose yourself

The third pillar consists of products you arrange yourself, such as a lijfrente (an annuity product). Contributions can be deducted from taxable income within certain limits. The self-employed (ZZP'ers) and employees of small firms without a scheme use this pillar most.

You pick the product and you carry the outcome. This guide does not compare or recommend products.

3. The AOW: 2% for every insured year

This is the part that matters most for internationals. Your AOW is proportional to the number of years you were insured.

Fifty years for the full amount

According to the SVB, you build up AOW during the 50 years before your AOW age. Each insured year gives you 2% of a full AOW, and 50 years gives 100%. If you were born on or after 1 January 1950 and were insured for less than one year, you get no AOW.

With an AOW age of 67, the window runs from age 17 to 67. Someone who arrived at 30 is missing 13 years before arrival. Those missing years are often called the AOW gap (AOW-gat).

Amounts from 1 July 2026

AOW amounts are updated twice a year, in January and July. The SVB rate table gives these full amounts from 1 July 2026 for people living in the Netherlands:

The net figures assume the payroll tax credit (loonheffingskorting) is applied to your AOW. If it is used against other income, a single person's net AOW drops to €1,285.22. The holiday allowance builds up monthly and is paid each May.

What a partial AOW looks like

Multiplying the full amount by 2% per year gives a rough idea of a partial AOW. The table below uses the July 2026 gross rates.

These are simple multiplications; real amounts change with indexation and tax. Someone who arrives at 30 and stays until 67 has 37 years, or 74% of the full AOW. Section 7 explains how to check your own figure.

DutchReview's pension guide notes that internationals often end up with a partial AOW unless they stay for decades. That is the design, not a flaw.

The safety net: AIO

If your AOW is not full and you have little other income or savings, you may qualify for the AIO, a supplementary income provision for older people. You must live in the Netherlands to receive it. NL Times reports that the number of AIO recipients rose by about 35% in ten years, to more than 56,000 last year.

The AIO is closer to social assistance than to a pension. There are asset limits, and owning a home or holding savings can rule you out. Knowing your expected AOW early is a better plan than counting on the AIO.

4. AOW age: 67 and 3 months from 2028

The AOW age rises gradually with life expectancy. It is not one fixed age, and it differs from the retirement age in many other countries.

The fixed ages

The Rijksoverheid overview shows the ages fixed up to 2031. From 2025 to 2027 the AOW age is 67. From 2028 to 2031 it is 67 and 3 months.

The expected ages come from the SVB list (version of 1 October 2026). Statistics Netherlands (CBS) revises its life expectancy forecast every December, so the expected ages can move.

Set five years ahead

By law, the AOW age must be fixed five years in advance. Each year the cabinet sets the age that will apply five years later, and once set it cannot change. According to CBS, 65-year-olds in 2031 can expect to live another 21 years on average.

Under current law, each extra year of life expectancy raises the AOW age by about eight months. A 2020 change softened the earlier one-to-one link to this two-thirds link.

A live political debate

The government that took office in 2026 wanted to return to a one-to-one link. DutchNews reported in March 2026 that, after criticism from MPs and unions, social affairs minister Hans Vijlbrief said he was "in no hurry" and would take more time.

As of October 2026 the law has not changed. The fixed ages up to 2031 are not affected, but younger residents should expect their future AOW age to remain a moving target.

Claiming starts four months ahead

If you live in the Netherlands, the SVB sends you a letter about four months before your AOW age. According to the SVB, you can claim from four months beforehand, not earlier. If you have pension rights in another country too, the SVB asks you to contact it.

5. Workplace pensions and the Wtp: the switch by 1 January 2028

The second pillar is in the middle of its biggest overhaul in decades: the Wtp (Wet toekomst pensioenen, Future Pensions Act).

What changes

According to DNB, the Wtp came into force on 1 July 2023. Most existing defined benefit (DB) schemes are being converted into defined contribution (DC) style schemes. Rights already built up are converted into a personal pension capital. Dutch calls this conversion invaren.

The government Q&A says your pension may rise sooner, but can also fall, depending on the economy. Risks are still shared among members, but each person's pension becomes more visible as an individual amount.

The timetable

All workplace pensions must be in the new system by 1 January 2028. The original deadline was 1 January 2027, but it was pushed back by a year during the parliamentary debate. In July 2026, the minister said there was no reason to move the final date again.

According to the government's update of 2 July 2026, 42 pension funds have switched. More than half of people in the Netherlands now build up or receive pension under the new rules, and that share was expected to reach about 96% within six months.

In an update on 15 October 2026, DNB said that about 55 funds and APF compartments plan to switch after 1 January 2027, most on the 1 January 2028 deadline. At insurers and premium pension institutions, about 38,000 schemes still need converting. Employees of smaller companies with insured schemes are most likely to be in this group.

How pensions moved at the switch

The government reported in January 2026 that pensions which moved to the new system in the previous year were raised by 14% on average. Smaller buffers meant more money could go to benefits. The ministry calls the increase structural.

But DutchNews (14 May 2026) reported that projected pensions for younger members of PFZW, PMT and bpfBOUW fell by 10% to 20% after the switch, mainly because interest rates dropped. At PMT, the projection fell 16.3% for a 35-year-old but only 1.6% for a 65-year-old.

These are projections, not cuts; current pensioners were not affected. The new system simply shows market movements more directly, so the yearly trend matters more than any single quarter.

ABP switches on 1 January 2027

ABP, the fund for government and education workers, is the largest in the country, with about 3.2 million members. NL Times reports that DNB approved its switch in July 2026. ABP plans to move on 1 January 2027 and is sending provisional statements in phases until November.

Many internationals at universities, research institutes and public schools are ABP members. If you receive a provisional statement, keep it; it makes later comparison much easier.

6. Private pensions: options when there is no workplace scheme

The third pillar is for people without a workplace pension or who want to add to it. This section covers the framework only.

Tax-deductible room

Contributions to products such as a lijfrente can be deducted from taxable income within an annual allowance, the jaarruimte. Unused room from earlier years, the reserveringsruimte, can sometimes be used later. DutchReview's guide explains both terms. How much room you have depends on your income and how much workplace pension you build up; the Belastingdienst (tax authority) has calculation tools.

Who should think about it

Small employers do not always offer a pension scheme, so check whether your contract mentions a pensioenregeling (pension scheme). Our Dutch employment contract guide covers how to read one. Tax treatment, withdrawal rules and costs differ between products, so speak to a qualified adviser before choosing one.

7. Check your own pension on mijnpensioenoverzicht.nl

One website brings most of your Dutch pension information together. It is the first thing to look at.

What it shows and what it does not

According to Rijksoverheid, mijnpensioenoverzicht.nl shows how much pension you have built up, roughly what you will receive net per month, and your AOW. You log in with DigiD, the Dutch government login.

By default the site shows AOW at the rate for someone living with a partner. If you live alone, adjust the setting; your AOW will be higher.

Step by step

If you have changed jobs several times, you may have small rights with old funds. Once you know a fund's name, you can also see its annual uniform pension statement (UPO) on the fund's website.

Use My SVB as well

For more detail on your AOW record, use My SVB, also with DigiD. It shows which years you were insured and whether you have gaps.

8. Leaving the Netherlands

If you might leave one day, note that the AOW and workplace pensions are handled differently. Neither disappears when you go.

AOW: rights stay, building up stops

According to the SVB, your AOW insurance usually ends when you move abroad. What you have built up remains and is paid from your AOW age. Each uninsured year reduces the pension by 2%.

NL Times reports that around 340,000 of the 3.7 million AOW recipients live abroad. The SVB pays AOW in virtually every country. In some countries, however, it can only pay the lower rate that applies to someone living with another adult.

Even a small AOW cannot be taken as a lump sum. If you live abroad you can ask for payment every three months or once a year to limit bank charges.

Voluntary insurance: apply within one year

If you want to keep building up AOW after leaving, you can apply for voluntary insurance (vrijwillige verzekering). The SVB conditions are that you were insured for at least one full year before leaving, and that you apply within one year of starting to live or work abroad. You can apply from two months before you leave.

Contribution rates are from the SVB tariff page. If you join your new country's state pension system, you may pay contributions in both places. Whether voluntary insurance makes sense depends on your situation, so discuss it with the SVB before deciding.

Workplace pensions: leave them or transfer them

Your workplace pension stays with the fund when you leave. ACCESS explains that an international value transfer (waardeoverdracht) to a fund in your new country is sometimes possible. It advises getting expert advice first, because tax consequences can make a transfer unattractive.

Small workplace pensions of up to €632.63 a year (2026) may, with your consent, be paid out in one go at the start date, according to the government's rules on small pensions. Before leaving, save a record of every fund and amount from mijnpensioenoverzicht.nl. You will need it to contact them later.

From 2029: part of the pension as a lump sum

The government plans to let workplace pension members take up to 10% of their old-age pension as a lump sum on retirement, from 1 January 2029. Rijksoverheid warns that this can raise your tax, reduce benefits such as healthcare allowance, and lower your pension for life.

9. Years in other countries: how coordination works

Most internationals have pension rights in more than one country. Two sets of rules decide how those rights fit together: EU coordination rules and bilateral social security agreements.

Within the EU: aggregation, but each country pays its share

Inside the EU, EEA and Switzerland, social security is coordinated. According to the European Commission's Your Europe guide, you may have pension rights in every EU country where you worked. You apply to the pension authority in the country where you live, or where you last worked. That authority collects your records from the other countries.

Insurance periods in other countries can be added together to meet a country's minimum qualifying period. But each country pays only for the years insured under its own system, from its own retirement age. Your Europe advises asking about your pension at least six months before you retire, because claims across several countries take time.

Outside the EU: bilateral agreements

The Netherlands also has social security agreements with a number of countries outside the EU. They typically do three things: decide which country's system you belong to while working, allow periods to be added together for qualifying conditions, and let pensions be paid without reduction in the other country. The details differ by agreement.

Xpat.nl notes that workers posted from another EU or EEA country or Switzerland are usually not covered by Dutch social security. Without a treaty, an exemption from the Dutch system is generally not available.

Posted workers and family members

If your employer posted you here temporarily, you may remain in your home country's system and not build up AOW at all. Check your certificate of coverage (an A1 form within the EU). Family members are a frequent blind spot: depending on the agreement, a partner who starts working in the Netherlands may join the Dutch system even if you do not.

No refund when you leave

Some countries refund pension contributions to foreigners who leave after a few years. The Netherlands does not. Your AOW contributions are not returned; your rights stay and are paid as a monthly pension. That means even a short stay can produce a small Dutch pension decades later, so keep the SVB informed of your address.

Buying back years before you arrived

In some cases you can buy AOW insurance for years before you came to the Netherlands. The government says you must apply within ten years of first coming to live or work here.

The SVB explains that buy-back applies to years in which you were not covered by another country's state pension insurance. Contributions are calculated per year, with a minimum of €3,876 a year from 1 July 2026. Ask the SVB whether you qualify before making plans.

10. Common misunderstandings

These are the misunderstandings that come up most often in expat media and advice services. Most are hard to fix once you notice them.

The treaty point causes the most confusion. Agreements help you qualify; they do not merge your pensions. You receive separate payments from each country.

11. What to do this week

Here are the practical steps, in order. The first two take about half an hour.

1. Log in to mijnpensioenoverzicht.nl with DigiD. Save a PDF of your expected AOW and workplace pensions
2. Check your AOW record in My SVB. Make sure your arrival date is correct and look for gaps
3. Look up your AOW age on the SVB website. You only need your date of birth
4. Check your contract and payslip for a workplace pension. A "pensioenpremie" deduction means you are in a scheme
5. Request your pension record from every other country where you worked. Most authorities offer an online overview
6. If you may leave, talk to the SVB about voluntary insurance as soon as you know the date. The window runs from 2 months before to 12 months after
7. For private pensions or voluntary insurance decisions, consult the SVB, your fund or an adviser. The answer depends on your situation

12. Example cases (all fictional)

The same rules lead to different questions depending on your situation. The three people below are fictional. Amounts are rough estimates based on the July 2026 full rates.

Ana: leaving after ten years

Ana will have 20% of a full AOW, paid wherever she lives. If she moves within the EU, her Dutch years can count towards her new country's qualifying period. Before leaving, she should record her fund details and give the SVB her new address.

Ben: a posted worker whose partner starts work

Ben remains insured at home under his certificate of coverage. If his partner takes a Dutch job, she may become insured in the Netherlands and start building AOW. That can also affect her health insurance obligations, so it is worth checking both together.

Chloe: staying long term

Chloe's AOW will be about 74% of the full amount, so her workplace pension will make the biggest difference. She should check whether her scheme is with a fund or an insurer, and when it moves to the new system.

13. What not to do

The table lists the mistakes that cost people the most. In most cases, by the time they notice, the deadline has passed.

14. Checklist

• Saved my AOW and workplace pension overview from mijnpensioenoverzicht.nl
• Checked my AOW record and gaps in My SVB
• Looked up my AOW age on the SVB website
• Confirmed whether my employer offers a pension scheme
• Collected pension records from other countries where I worked
• If posted, checked the end date of my certificate of coverage
• If leaving, noted the 12-month deadline for voluntary insurance
• Told my family where my pension details are kept

15. Summary

• The Netherlands scored 85.8 in the 2026 Global Pension Index and ranked first for the fourth year; its workplace pensions are the main reason
• Retirement income comes from three pillars: the AOW, workplace pensions and private savings
• The AOW builds up at 2% per insured year, so people who arrive as adults will not get the full amount
• The AOW age is 67 until 2027 and 67 and 3 months from 2028, and is expected to rise for younger generations
• Workplace pensions move to the new Wtp system by 1 January 2028, and projections now move more with the markets
• Rights stay when you leave; voluntary insurance must be requested within one year
• EU rules and treaties let periods count towards qualifying conditions, but each country pays its own part; check your situation with the SVB, your fund or an adviser

Sources

Index and coverage

• Marsh CFA Institute Global Pension Index 2026 — CFA Institute: release date, 55 systems, weights, top six scores
• Netherlands retains top spot in Marsh CFA global pensions ranking — IPE: rebrand, 2025 score, sustainability dip
• Netherlands tops global pension index for fourth consecutive year — European Pensions: sub-index scores

Expat media

• Dutch pension system named world's best for fourth year running — IamExpat: starting point (22 October 2026)
• The ultimate guide to pensions in the Netherlands in 2026 — DutchReview: three pillars, partial AOW, jaarruimte
• The pension system in the Netherlands — Expatica: share of employers with schemes
• Younger workers' projected pensions fall under new system — DutchNews: projections after the switch
• Minister to "take more time" on pension and maternity pay reform — DutchNews: AOW age debate
• Dutch state pension paid in nearly every country worldwide — NL Times: recipients abroad, AIO growth
• Dutch fund ABP wins approval to switch to new pension system — NL Times: ABP's switch
• How can I take my pension to another country — ACCESS: AOW and workplace pensions when leaving
• The Dutch Social Security System — Xpat.nl: national insurance, posted workers, treaties
• Pensions in the Netherlands — The Hague International Centre: three pillars, EU pensions via the SVB

Official sources

• AOW pension amounts — SVB: amounts from 1 July 2026
• Building up an AOW pension — SVB: 2% per year, 50 years
• Your AOW pension age — SVB: AOW age by date of birth
• How to claim an AOW pension — SVB: claiming four months ahead
• Living outside the Netherlands — SVB: AOW abroad
• Small AOW pensions cannot be taken as a cash lump sum — SVB: no lump sum, payment frequency
• Qualifying conditions for voluntary insurance — SVB: conditions and deadline
• Voluntary insurance cost outside the Netherlands — SVB: 2026 contributions
• When to take out voluntary insurance — SVB: buying back years before arrival
• Voluntarily filling gaps in AOW qualifying years — Government.nl: ten-year application window
• AOW-leeftijd 2025-2031 — Rijksoverheid: fixed AOW ages
• Belangrijke periode voor pensioentransitie breekt aan — Rijksoverheid: 42 funds, deadline
• Pensioenen dankzij nieuwe stelsel flink omhoog — Rijksoverheid: average 14% increase
• Wat verandert er met het nieuwe pensioenstelsel voor mij? — Rijksoverheid: what changes for members
• Regels voor kleine pensioenen — Rijksoverheid: small pension limit of €632.63
• Bedrag ineens — Rijksoverheid: planned 10% lump sum from 2029
• Waar vind ik informatie over hoeveel pensioen ik opbouw? — Rijksoverheid: what mijnpensioenoverzicht.nl shows
• Wet toekomst pensioenen — DNB: Wtp overview and transition update (15 October 2026)
• State pensions abroad — Your Europe, European Commission: EU pension coordination

All sources were checked on 22 October 2026. Pension amounts and ages change, so confirm the latest details on official sites before making decisions.

Original article

Dutch pension system named world's best for fourth year running — IamExpat