Purchasing an AOW gap in Amsterdam: supplementing your pension
The **AOW gap** is the difference between your desired pension income and the **AOW benefit**. In Amsterdam, where living costs are higher, this gap is often larger. By purchasing it, you strengthen your financial position after the **AOW age** (currently 67 years and 3 months). This article highlights local options, legal frameworks, and practical steps, including contact points such as the **Amsterdam District Court** at Parnassusweg 220.
What does an AOW gap entail?
Your **AOW benefit** often does not cover all expenses, especially not in a city like Amsterdam with high housing costs. The gross AOW in 2024 amounts to approximately €1,626 net per month for single persons with full entitlement. The gap arises when this falls short for your lifestyle. In Amsterdam, many residents aim for 75-80% of their last salary for a comfortable retirement.
Legal basis in Amsterdam
Purchasing an AOW gap falls under the **Financial Supervision Act (Wft)**, **Pension Act**, and **Income Tax Act 2001**. For legal advice in Amsterdam, you can go to the **Amsterdam District Court** (Parnassusweg 220) for pension disputes or the **Amsterdam Legal Aid Office** (Vijzelstraat 77) for free initial assistance. They provide information on rules for **supplementary pensions** via employers or private products.
How do you purchase your AOW gap in Amsterdam?
Amsterdam offers various local and national options:
- Employer: Build extra through collective schemes with Amsterdam employers, often with premium exemptions.
- Private: Take out an **IPP** with providers such as NN or Aegon, with advisors in Amsterdam Center.
- Savings solutions: Use **annuity insurances** or bank savings products at ABN AMRO or ING in the city.
- Utilizing assets: Convert savings into a **lifetime annuity** via pension funds, with tailored advice.
Specific for self-employed in Amsterdam
Self-employed in Amsterdam can benefit from:
- 30% ruling: Tax advantage for expats and self-employed to build up pension.
- **IPP or bank savings**: Deductible premiums via local advisors.
- Life insurances: Products with savings element, tailored to Amsterdam costs.
Examples from Amsterdam practice
Example 1: Employer in Amsterdam
Situation: Marie (56), resident in Amsterdam South, earns €4,500 gross and builds up €1,400 pension. Her expected AOW is €1,626. Gap: €1,474. Via her employer, she purchases €500 extra with gross €200/month premium. Advice point: **Amsterdam Legal Aid Office** (Vijzelstraat 77).
Example 2: Self-employed in Amsterdam
Situation: Tom (52), freelancer in Amsterdam East, uses the 30% ruling. He takes out an IPP for €300/month, tax deductible. After retirement, this supplements his AOW to €3,200 net. For disputes: **Amsterdam District Court** (Parnassusweg 220).
Next steps in Amsterdam
Contact the **Amsterdam Legal Aid Office** (Vijzelstraat 77, tel: 020-5338430) for free advice or the **Amsterdam District Court** (Parnassusweg 220) for formal procedures. Consider a financial advisor in the region for personal calculations.