Premium and Costs of AOW Voluntary Insurance in Amsterdam

In Amsterdam, where many expats and ZZP'ers live who have worked outside the Netherlands, the AOW voluntary insurance is popular to close pension gaps. The premium amounts to approximately 20% of the minimum wage per year, which comes to about €1,500 to €2,000 per missing year in 2024. This premium is tax deductible as 'contribution to social insurance premiums', extra advantageous for Amsterdammers with higher incomes due to urban prosperity. Partners in Amsterdam households receive a discount if both participate. The SVB calculates the exact costs based on your gross annual income and indexes them annually. Payment can be in instalments or one-off, with remission via special assistance from the Amsterdam municipality for low incomes – check the website of the Dienst Werk en Inkomen. According to the AOW Voluntary Insurance Decree (article 5), the insurance lapses upon non-timely payment, without refund. Return: per supplemented year, you receive approximately €1,200 gross AOW per year extra, indexed with inflation. Example: for an Amsterdam ZZP'er, supplementing 10 years costs €18,000, but yields €12,000 per year from AOW age. Take life expectancy into account; in case of early death, possible loss. Compare with local options such as supplementary pension via the Pension Fund for ZZP'ers or private products from Amsterdam advisors for the best choice.