Voluntary AOW insurance
The AOW is a national insurance scheme. This means that you will normally be compulsorily insured under this scheme if you live in the Netherlands. If you start living or working outside the Netherlands, you will normally cease to be compulsorily covered under these schemes. This will affect the amount of your AOW pension or Anw benefit. If you meet the conditions, you can continue these insurance programmes on a voluntary basis.
Your compulsory insurance under the AOW scheme will normally end as soon as you start living or working outside the Netherlands. In that case, you can apply for voluntary AOW insurance. By taking out voluntary AOW insurance, you can ensure that you receive an AOW pension at an unreduced rate when you reach the pensionable age. A person can take out voluntary AOW insurance as from his or her 15th birthday. Certain conditions have to be met for participation in the AOW voluntary insurance scheme. You can only qualify if you:
- were compulsorily insured for at least one year immediately prior to the period of voluntary insurance, and
- you submit a written application for voluntary insurance to the SVB within 12 months of the compulsory insurance having ended, and
- you are aged 15 or over.
The cost of voluntary AOW insurance depends on your personal income. The term income here refers to your income from the Netherlands as well as from other countries.
Insofar as applicable, the voluntary insurance contribution will be deducted from your:
- wages or salary;
- social security benefit(s);
- other periodic benefits and provisions;
- profit from enterprise;
- income from other activities (e.g. fees);
- taxable income from home ownership (notional rental value – eigenwoningforfait);
- income from temporary renting out of the accommodation.
Certain expenses are deductible, such as:
- social insurance contributions deducted from the salary;
- mortgage interest;
- annuity premiums;
- contributions to a scheme providing for a periodic benefit in case of sickness, incapacity or accident;
- child care expenses;
- personal expenses and obligations (donations, alimony, expenses relating to children under 30).
Contribution ratesFor 2007, the AOW contribution percentage has been set at 17.9. The contribution is calculated on the basis of an income of € 31,122 maximum. The general tax credit is then deducted from the contribution due. For AOW insurance, the maximum general tax credit is AOW € 1,087. If you have an income of € 31,122 or higher, you pay €
Our alternative: http://www.aowgarantiepolis.nl/. In almost every situation more flexible and much cheaper. Sources: www.svb.nlwww.aowgarantiepolis.nl
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