Dutch state pension

ChequeBookGerry

Hello all, 

I'm after some very specific information on the Dutch state pension (AOW) and hoping someone out there has some experience of it...

My wife and I spent 9 years living in NL and have returned to the UK.  We were both resident in NL.  In terms of the AOW, I know we should be entitled to something but:

• Is it as simple as 9 x 2% x 70% of the national minimum wage, with a reduction for being married (so 9 x 2% x €1,047.60 = €188.57 per month).  I'm ignoring tax and any healthcare contributions for now.
• I worked for the 9 years paying tax but my wife did not.  Does she also get the €188.57 per month (based on residency) or is it contributution driven like the UK?

Obviously I'll write to the SVB at some point, but I'm just doing some forward planning so would like a rough idea.

Many thanks.

pinnks

I don't know the answers to your specific questions but when the time comes, NL will do 2 calculations of your pension and pay you the higher amount.

1. A pension based solely on your NL contribution record, i.e. the same as they would do for anyone who had spent their entire contribution life in NL.  If your record is not sufficient to meet any minimum years' requirement, then the amount would be zero.

2. A theoretical amount of pension calculated on the assumption that all of your contributions or credits etc had been made in NL, i.e. your UK and NL records combined but disregarding any UK periods that overlap with NL periods.  This gets you past the minimum requirements, etc.  This amount is then pro-rated, based one the ratio of your NL record to your aggregated record.  This is likely to be greater than zero.
 

Brie

I know nothing of the Dutch SP but do suggest you check your UK forecasts.  If you have a shortfall that you won't be able to make up then check the reciprocal agreements with The Netherlands to see if you can have it added to your UK SP. 

Now you might not want to do this.  I get full UK SP but also get a "SP" from another country so it was better for me to keep them separate.  

ChequeBookGerry

Brie said:

I know nothing of the Dutch SP but do suggest you check your UK forecasts.  If you have a shortfall that you won't be able to make up then check the reciprocal agreements with The Netherlands to see if you can have it added to your UK SP. 

Now you might not want to do this.  I get full UK SP but also get a "SP" from another country so it was better for me to keep them separate.  

Thanks.  I'll have a complete UK NI contribution record by the time I retire so was hoping that, like you, I'll get double-bubble with both the UK and NL ones seperately.  I'm presuming HMRC and the Dutch SVB won't talk to each other without me asking them to.

ChequeBookGerry

pinnks said:

I don't know the answers to your specific questions but when the time comes, NL will do 2 calculations of your pension and pay you the higher amount.

1. A pension based solely on your NL contribution record, i.e. the same as they would do for anyone who had spent their entire contribution life in NL.  If your record is not sufficient to meet any minimum years' requirement, then the amount would be zero.

2. A theoretical amount of pension calculated on the assumption that all of your contributions or credits etc had been made in NL, i.e. your UK and NL records combined but disregarding any UK periods that overlap with NL periods.  This gets you past the minimum requirements, etc.  This amount is then pro-rated, based one the ratio of your NL record to your aggregated record.  This is likely to be greater than zero.
 

OK.  Does that mean the wife gets nothing then?

friolento

I have no idea bout Dutch stat pensions but a cursory glance at official information suggests your wife migh have an entitlement due to having been a resident. You need to check with the Dutch authorities: https://www.netherlandsworldwide.nl/aow-pension-abroad/what-is-aow

If you are on Facebook, there's a really helpful specialist group dealing with state pensions from / in EU countries, alongside UK state pensions. In a nuthsell, you are entitled to both but you might have to take action to maximise them. You can't escape the taxman - the best you can hope for is that you only have to pay tax in one country. As a UK resident with foreign income, you probably have to complete an annual self assessment, too

An easy explainer of how state pensions from EU and UK work (still valid despite Brexit): https://www.youtube.com/watch?v=Re7lLY9DIv8

Facebook group: https://www.facebook.com/groups/ProtectEuropeanPensions/

p00hsticks

It might be worth getting in touch with the International Pension Centre here - a government organisation that you can actually e-mail! (presumably because many of the people it deals with are abroad)

International Pension Centre - GOV.UK (www.gov.uk)

xylophone

Are you able to log in to the official web site?


https://www.government.nl/documents/questions-and-answers/how-much-state-pension-will-i-receive

pinnks

ChequeBookGerry said:

pinnks said:

I don't know the answers to your specific questions but when the time comes, NL will do 2 calculations of your pension and pay you the higher amount.

1. A pension based solely on your NL contribution record, i.e. the same as they would do for anyone who had spent their entire contribution life in NL.  If your record is not sufficient to meet any minimum years' requirement, then the amount would be zero.

2. A theoretical amount of pension calculated on the assumption that all of your contributions or credits etc had been made in NL, i.e. your UK and NL records combined but disregarding any UK periods that overlap with NL periods.  This gets you past the minimum requirements, etc.  This amount is then pro-rated, based one the ratio of your NL record to your aggregated record.  This is likely to be greater than zero.
 

OK.  Does that mean the wife gets nothing then?

That depends on her record in each country and the extent, if any, to which NL views married couples as a single entity for pension purposes.

pinnks

ChequeBookGerry said:

Brie said:

I know nothing of the Dutch SP but do suggest you check your UK forecasts.  If you have a shortfall that you won't be able to make up then check the reciprocal agreements with The Netherlands to see if you can have it added to your UK SP. 

Now you might not want to do this.  I get full UK SP but also get a "SP" from another country so it was better for me to keep them separate.  

Thanks.  I'll have a complete UK NI contribution record by the time I retire so was hoping that, like you, I'll get double-bubble with both the UK and NL ones seperately.  I'm presuming HMRC and the Dutch SVB won't talk to each other without me asking them to.

The reciprocal agreement between the UK and NL is the EU procedure I described in my post.  Pensions are never linked, transferred or otherwise merged.  Each country will pay you a pension based on the 2 calculations I posted earlier.

From the UK perspective, those rules only help/change things, if you have fewer than 10 UK years, in which case, your NL years, when added to your UK years can get you past the magic 10-years requirement.  But that is not, I think, relevant here.

In NL, the aggregation/pro-rata calculation is likely to ensure that you get a pension from NL based on your contribution record there.

When you say "complete UK NI contribution record", what does that mean?  Have you checked your UK pension forecast to see where you stand and whether you still need to contribute any years before reaching pension age to get the max?