What is an aow?

An AOW, or Age Pension, is a social security program in the Netherlands that provides a basic income to individuals who have reached the retirement age for state pension purposes. The pension amount is based on the number of years the individual has lived in the Netherlands between the ages of 15 and the state pension age.

To be eligible for the AOW pension, individuals must have reached the state pension age, which is currently set at 67 years and 3 months. Additionally, individuals must have lived or worked in the Netherlands for at least one year before reaching the state pension age to qualify for the full pension amount.

The AOW pension is funded through a pay-as-you-go system, where current workers pay social security contributions that go towards funding the pensions of current retirees. The AOW pension is meant to provide financial security for individuals in their old age and help them maintain a basic standard of living.

In addition to the AOW pension, individuals may also be eligible for supplementary pensions from their employer or other retirement savings. These additional sources of income can help individuals maintain a higher standard of living in retirement.