Premium and Costs of AOW Voluntary Insurance

The premium for the AOW voluntary insurance 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', making it attractive for higher incomes. For partners, a discount applies if both participate. The SVB calculates the exact costs based on your gross annual income and indexes them annually. Payment is made in instalments or in a lump sum, with the possibility of remission for low incomes via exceptional assistance. According to the Decree on Voluntary AOW Insurance (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: 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, it is a loss. Compare with private pension build-up for optimal choice. (202 words)