By the end of 2008, the pension entitlement of people in the Netherlands under the age of 65 averaged 8,100 euro. The claim consists of an old-age (AOW) part (4,600 euro) and a work-related part (3,500 euro). If everyone would build up their pensions at the same rate until they have reached the age of 65, the average pension entitlement at 65 would be 19,800 euro. Employees have the highest pension claims.
Half of pension is AOW
Nearly half of the maximum annual pension entitlement, i.e. 9,800 euro is AOW. People build up 2 percent of AOW for each year between 15 and 65 they are living in the Netherlands. The work-related pension amounts to 10 thousand euro.
Employees have highest work-related pension entitlements
With 24,900 euro annually, employees have the highest pension claims. This is due to the fact that employees build up large pension entitlements through their employers: 15,300 euro in 2008. Over 60 percent of 15 to 65-year-olds are employees.
Maximum annual pension entitlements by age, 2008*
AOW is main source of income of non-working people
Inactive people’s main source of income is AOW. If they have work-related pension entitlements, these have often been built up in the period before they became inactive. As most non-working people live on low incomes prior to their 65th birthday, they are better off financially when they reach the age of retirement. More than 30 percent in the population aged between 15 and 65 belong to the category of non-workers.
Relation between maximum pension entitlements and current income by age, 2008*
Self-employed organise their own supplementary pensions
Work-related pension entitlements of self-employed are relatively low. They organise their own pension schemes, e.g. annuity insurances. Many self-employed have build up considerable amounts of private capital they can rely on to finance the period after retirement. On average, they are wealthier than employees or non-workers. Nearly 7 percent of 15 to 65-year-olds are self-employed.
People with private capital exceeding 20,000 euro by age, 2008*
Elisabeth Eenkhoorn and Marije van de Grift