AOW Gap: The Gap in Your AOW Accrual in Amsterdam
The AOW gap occurs when you did not live in the Netherlands between your 15th birthday and the AOW age, resulting in a lower basic pension. This is relevant for many Amsterdam residents with a migration background. Since 2024, a compensation scheme provides support for groups such as children of guest workers. Read on to learn how it works and the steps you can take in Amsterdam.
What is an AOW Gap?
Under the General Old Age Pensions Act (AOW), you accrue pension from age 15 until retirement age: 2% per full year of insurance in the Netherlands. An AOW gap arises from (partial) residence abroad without coverage. This often affects Amsterdam residents from:
- Families who moved to Amsterdam from abroad before age 15.
- Children of migrants from the 1960s/1970s with incomplete accrual.
- Returnees after emigration, such as from Turkey or Morocco.
In Amsterdam, around 10% of AOW recipients in 2024 receive an incomplete pension due to this, with a full gap leading to 0% AOW.
Legal Basis of the AOW Gap
The foundation is the General Old Age Pensions Act (AOW):
- Article 7 AOW: Insurance starts after the 15th birthday.
- Article 16 AOW: Pension proportional to insured years (2% per year).
- Article 17 AOW: Exceptions via international treaties for time spent abroad.
From 1 January 2024, the AOW Gap Compensation Act (Bulletin of Acts and Decrees 2023, 456) provides a supplement for affected groups. It runs until 2035 and is neutrally funded.
Common Causes in Amsterdam
The gap results from residence outside the Netherlands, not employment. Typical cases for Amsterdam residents:
- Raised abroad: No accrual until arrival in Amsterdam.
- Children of guest workers: Born in Morocco or Turkey, parents worked in Amsterdam industry.
- Emigration and return: Departure after age 20, remigration later, e.g., after work in Australia.
- No nationality until age 15: Before 1985, only residence counted for non-Dutch nationals.
Comparison: Full vs. Incomplete AOW
| Situation | Number of Years | AOW Amount (2024, single) |
|---|---|---|
| Full AOW (50 years) | 50 | €1,450.17 gross/month |
| Half AOW gap (25 years) | 25 | €725.09 gross/month |
| Full AOW gap | 0 | €0 |
Source: SVB, 2024 amounts. Partner supplement can add €1,000+ for married individuals.
Impact of an AOW Gap for Amsterdam Residents
A lower pension creates financial challenges in expensive Amsterdam. Examples:
Example 1: Ahmed (born 1965, Morocco) settled in Amsterdam-West at age 10. Accrual from 15: 40 years, 80% AOW (€1,160). Compensation can top it up.
Example 2: Maria (born 1955, Suriname) arrived in Amsterdam at age 25. 10-year gap: 80% AOW, no compensation.
Result: Risk of social assistance via the Municipality of Amsterdam or family dependency. Partner supplement helps with a full AOW partner.
Compensation Scheme for AOW Gap
The law covers children of labor migrants (e.g., from Morocco/Turkey, born 1955-1986) with a gap before age 15. Conditions:
- AOW entitlement as of 1-1-2024.
- Gap due to residence abroad.
- Parents worked in the Netherlands, e.g., Amsterdam port or factories.
Supplement up to full AOW, paid monthly via SVB. Automatic for many; applications accepted until 2035.
Your Rights and Obligations with an AOW Gap
Rights:
- Free trial calculation from SVB.
- Compensation if eligible.
- Objection within 4 weeks; appeal to Amsterdam District Court.
Obligations:
- Notify SVB and Municipality of Amsterdam of your address.
- Provide proof of uninsured residence abroad.
Read more about AOW basic pension.
Frequently Asked Questions
Can I make up an AOW gap later?
No, accrual ends at retirement age. Use frontier worker rules or treaties for emigration, not retroactively.
Entitled to compensation?
Yes under the AOW Gap Compensation Act: born outside NL, migrant parents, gap before 15. Check via SVB mypension.
Partner with full AOW?
Receives partner supplement up to nearly €1,400+ with half AOW.
How do I check my accrual?
Via SVB login or statement, ideally 5 years before AOW age.
Tips for Amsterdam Residents
Avoid shocks:
- Trial calculation: Request via SVB.nl.
- Save: Via employer pension or annuity.
- Partner supplement: Provides extra with full AOW partner.
- Objection: For errors; 20% success rate, via Amsterdam District Court.
- Seek help: At Amsterdam Legal Aid Office for personal advice.
Related topics: AOW Partner Supplement