The Algemene Ouderdomswet (AOW) is the Dutch state pension scheme, providing a basic income to residents from the statutory state pension age. In 2026 that age stands at 67, having risen gradually from 65 in line with life-expectancy projections published by the Sociale Verzekeringsbank (SVB).
The AOW is financed on a pay-as-you-go basis through a wage-tax premium levied on income in the first tax bracket. Employers deduct the premium together with other wage taxes and remit it to the Belastingdienst, which transfers funds to the SVB. Entitlement accrues at 2% per year of residence or insured employment in the Netherlands between ages 17 and 67, meaning a full AOW requires 50 insured years.
Expats and cross-border workers should check their accrued years via Mijn SVB, as gaps reduce the eventual benefit. Voluntary insurance is available in limited circumstances for periods spent abroad.