Employees normally retire at the age of 68 year so there is a need for a retirementplan in the Netherlands. They can choose to retire earlier or later, perhaps while continuing to work part-time, or to exchange the dependant’s pension for a higher retirement pension or vice versa. The options depend on your pension regulations.
How to create retirementplan in the Netherlands?
The three parts of a retirement plan. Retirement plan is a term that covers a set of financial arrangements providing your employee with an income upon retirement. A retirement plan generally consists of three parts:
- A statutory state pension: from the age of 67-68, everyone who lives in the Netherlands receives a state pension under the General Old Age Pensions Act (Algemene Ouderdomswet AOW). State pension age calculation.
- An employer-sponsored retirement pension: under the administration of a pension insurer, the contributions paid by you and taken from your employee’s paycheck accrue to the retirement benefit of your employee. They provide information on the target pension and accrued value in the annual uniform pension statement (UPO). A retirementplan in the Netherlands is a transparent way to create excellent employee benefits.
- A supplementary pension: your employee may have made private arrangements to supplement his pension through savings, investments or an annuity from an insurance company. That is how to create retirementplan in the Netherlands.
Good pension management depends on finding the right balance between competing interests such as attractive pensions, costs, certainty, indexing, risk and manageability. At the same time, proper account has to be taken of the interests of both the employer (the sponsor) and the employees. We have a wide-ranging experience of the various solutions that can be deployed to answer questions such as:
• How can organisations use their pension scheme to differentiate themselves from their labour market competitors?
• How can we minimise the risks and costs of their scheme?
• How can we offer participants attractive pensions in return for acceptable contributions?
• How can regulations and pension schemes be made comprehensible and operate transparently?
We are an independent pension broker in Amsterdam. Below you find a form to get in touch.
Extra information about the 30% ruling for expats
If certain conditions are met, expatriates may be eligible for the 30% rule. This arrangement means that there is a tax-free allowance which will be given up to 30% of wages. The tax free fee is for the extra cost of the temporary residence of the expat in the Netherlands. This allowance is tax not paid.
In principle you usually do not build up pension on the tax-free reimbursement of the 30% rulers. The pension benefits granted by your employer are based on your taxable salary; thus lower since the “top” is taken off as a tax free reimbursement.