How Do Pensions in the Netherlands Really Work?

In this video we're looking at how pensions in the Netherlands work. The Dutch pension system was coined one of the best in the world, but is that really so? Here I'm sharing some pension schemes that you are eligible for.
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Are you also dreaming of retiring early? Let me know what are your thoughts down in the comments.
#DutchPensionSystem #MovingToTheNetherlands #LivingInTheNetherlands
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//DISCLAIMER:
I'm not a certified financial advisor, the insight I share in this video is for edutainment purposes. I encourage you to do your own research before signing up for any pension plans.

[@MakingitinHolland]

Definitely be smart about your money & investments for your future. Also check out this video that I've watched when researching for this video: kzbin.info/www/bejne/gp7FZauhh7ysnrM I am Expat also has a helpful article on this topic as well: www.iamexpat.nl/expat-info/official-issues/pensions-retirement-netherlands As with any of these topics around investment & pension please do your own research as well. Thank you for watching!

[@Tweeteketje]

At 6:15 you're actually explaining the pay-as-you-go system: the current pension payments is paid by the current population. However, this only applies to the state pension, not to the occupational pension. Dutch occupational pension is not based on a pay-as-you-go system, but is capital based. So no need to worry too much that because of the ratio retirees/workers, there would be no capital left when you retire. The strength of the Dutch system is the combination of a pay-as-you-go system (state pension) and a capital based system in the occupational pension. The Netherlands is also changing the pension system, it will shift towards Defined Contribution and the capital accrued is much more connected to the individual.

[@MakingitinHolland]

Thank you for the elaborate clarification. Indeed the occupation based pension is much more individual. I’m curious to see how the system will shift.

[@almanoor-bakker5964]

This is actually not true. The money you pay into your pension fund is and stays YOUR money. It is put in the stock market for you, and provides YOUR income when you retire. The 500 that your contribution of 3 years is now will be your yearly pension after retirement. Because it is very little (due to only 3 years of contribution) it mostly is paid as a lump sum on the date of rendement.

[@MakingitinHolland]

Thanks for sharing this, this is one of the videos I've researched when making this video. I'm super curious what are your thoughts on it. kzbin.info/www/bejne/gp7FZauhh7ysnrM Also, one thing I didn't mention is inflation (and possibly hyper inflation) and even if the money built up is "good", with that money you won't be able to achieve much possibly. So, that's why I encourage different ways to diversify income & investments. Pensions are not as great as they used to be.

[@kamalkabbani5285]

I got my nationality here in Netherlands 10 years back , I don’t have work history, and next year I will be 67 years , how the calculates the pension payment please ? Thank you

[@albertlay8927]

Very brave to tackle such a complex, boring yet most usefull topic. For expats too, even if they've only worked in NL for a limited time. After all, if an expat has worked for - say - 5 years, he/she has build up an "AOW"-right of 10% (5*2%) of the AOW-allowance at that time, probably some € 100 to € 120 per month if you are single. Doesn't matter where you live at that time, in NL or anywhere in the world. (Lots of Dutch elderly receive there AOW in like Spain). You built up AOW-rights when you are paying taxes in NL, 2% for every year, nationality is not important. He/she will also receive a pension if participated. It is this AOW that is under pressure by the skewed demographics. Not the pensions. The problem with the pensions is, that the pension funds (which are insurance companies) invest these funds in stocks and such. Because of the banking crisis they lost a lot of money, that drained their reserves to pay the pensions. Working untill 67 is a very long time. But on the up side: my pensions (I have one from work and an extra private plan) kicks in when I'll be 65. So in the years from my 65 till my retirement at 67, I will have my income from work plus my pension, so basically I wil have a double income.

[@JonathanWrightZA]

Hallo! Geweldig channel! Zou je kunnen zegge over Oud Nederlanders en werk? Ik ben een van hen, en Nederlands aan het leren (Afrikaans helpt veel). Im assuming you can speak some Dutch, because I use every opportunity I get to practice 😝 Enjoying the videos; it's a big incentive for me to get to the Netherlands because I can get my citizenship back after a year 😃

[@MakingitinHolland]

Dank je! :) Thank you for checking out the videos.

[@abosalem6849]

Hello I want to immigrate and work in Holland. I would like to work as a security guard, supermarket worker, hotel guard, clothing store worker, or any other work. How can I communicate with you

[@MakingitinHolland]

Hello Abo, thank you for your comment. At the moment I’m not (yet) giving career advice but in the coming period will host livestreams answering all the questions. Please keep an eye out for those and thank you for watching!

[@abosalem6849]

@@MakingitinHolland Thank you

[@256karolina]

I find this video rather offensive towards retired people... It is possible to enjoy your life and have energy after the retirement age. Try to be more sensitive. Also - the retirement system you're describing is the most common one in Europe (and I'm pretty sure around the world) and was introduced in late 19th century in Germany, not in the 50s in NL. I just googled "history of retirement" and that basic research also confirms. I'm writing this comment because I'm very disappointed. I was counting on this channel to be my basic source of information about life in NL, but I don't think you do your research very carefully... Sorry to see that.

[@MakingitinHolland]

Hey Karolina, thank you for your comment I appreciate the feedback. The video was not meant to be offensive to anyone, but rather to shine a light on the importance of having control over your own finances without having to depend on something external. I have done my research on this topic specifically for the Netherlands; thus haven't looked into what happens in other European countries (or around the world). The current retirement system in the Netherlands dates back to the changes of the 1950s. This is known as the the General Old-Age Pensions Act (AOW). You can read more about it here: www.pensioenfederatie.nl/website/the-dutch-pension-system-highlights-and-characteristics As I always say in the description of my videos as well, I always encourage you to do your own research about the detailed topics I talk about as well. At the end of the day, it's the choices you have to make, but please be mindful that I put a lot of time doing my research for any piece of content I publish inside this channel.

[@wisegeorge1472]

@Karolina. Hello friend 👋 Nice to meet you here, how are you doing today?

[@richardgreene7329]

You ageist