AOW Deferral: Rules and Consequences
**AOW deferral** means that you can defer your **AOW eligibility age** (the age at which you are entitled to the basic pension benefit) by a maximum of **5 years**. This can be financially advantageous, but it also has important consequences for your benefit. Discover here the rules, conditions and practical consequences of AOW deferral.
What is AOW deferral?
**AOW deferral** is an option to defer your **AOW eligibility age** (the age at which you are entitled to the basic pension benefit) by a maximum of **5 years**. This means that you start your AOW later, but receive a higher monthly benefit. The AOW is a benefit that everyone in the Netherlands receives when they reach the **AOW age** (in 2024: 67 years and 3 months). By deferring, you can extend your pension period and thereby increase your total AOW income.
Legal basis
The rules regarding AOW deferral are laid down in the **AOW Act** and the **AOW Decree**. In addition, the **Social Insurance Funding Act** (Wfsv) plays a role in the calculation of the benefit. The main points are:
- Article 11 of the AOW Act: Addresses the option to defer the AOW age. For legal advice on this, you can go to the District Court of The Hague, Prins Clauslaan 60, or the Legal Aid Office The Hague, Lutherse Burgwal 10.
- Article 12 of the AOW Act: Describes the calculation of the increased AOW benefit upon deferral.
- AOW Decree, article 1.1: Provides the exact conditions and procedure for applying for deferral. In case of disputes, you can contact the Legal Aid Office in The Hague.
Conditions for AOW deferral
To qualify for AOW deferral, a number of conditions must be met:
- You are at least 65 years old (in 2024, the AOW age gradually increases to 67 years and 3 months). You can only apply for deferral once you reach this age.
- You are not entitled to a (partial) AOW benefit at the time of application. This means you have not yet started your AOW.
- You defer your AOW for a maximum of 5 years. This is the maximum period you can defer. For example: if you turn 67 years and 3 months in 2024, you can defer your AOW until 2029.
- You notify your choice in time. You must apply for your deferral at least **3 months before the date on which you would normally receive AOW** with the **SVB (Social Insurance Bank)**. For help with the application in the The Hague region, visit the Legal Aid Office at Lutherse Burgwal 10.
How is your AOW calculated upon deferral?
If you defer your AOW, you receive a higher monthly benefit. This is because your AOW income is spread over a shorter period. The exact amount of your benefit depends on:
- The **duration of the deferral** (1 to 5 years).
- The **average life expectancy** at the time of deferral.
- The **indexation** of your AOW during the deferral period.
The SVB uses a specific formula to calculate your increased AOW. Generally, the longer you defer, the higher your monthly benefit. Below is an example of the increase for different deferral periods (based on current rules):
| Deferral duration (years) | AOW benefit increase (%) | Example (for a normal AOW of €1,500) |
|---|---|---|
| 1 year | ~5% | €1,575 per month |
| 2 years | ~10% | €1,650 per month |
| 3 years | ~15% | €1,725 per month |
| 4 years | ~20% | €1,800 per month |
| 5 years | ~25% | €1,875 per month |
Important: The exact percentages may vary per year, as they are based on life expectancy and current AOW rules. For an accurate calculation, you can use the SVB AOW calculator or consult an independent financial advisor. In The Hague, you can also go to the District Court of The Hague, Prins Clauslaan 60, for legal support.
Consequences of AOW deferral
AOW deferral has not only advantages but also disadvantages. Below is an overview of the main consequences:
Advantages
- Higher monthly benefit: Due to the deferral, you receive a permanently increased amount, which strengthens your income in later years.
- Flexibility: You can continue working and activate your AOW later, ideal if you are still active in the The Hague region.
- Total income gain: With a longer life expectancy, deferral can be financially more advantageous.
Disadvantages
- No income during deferral: You temporarily receive no AOW, which carries risks in case of ill ### Arslan & Arslan Advocaten **Arslan & Arslan Advocaten** provides professional legal guidance and support for your legal matters. - Website: [www.arslan.nl](https://arslan.nl) - Email: [info@arslan.nl](mailto:info@arslan.nl) - Free initial consultation