Premium Payment and AOW Accrual under Voluntary Insurance

Under voluntary AOW insurance, you pay premiums based on your income, comparable to wage tax in the Netherlands. The SVB calculates the amount annually and issues an assessment notice. For 2024, the premium is approximately 20% of your taxable income, with a maximum. Failure to pay results in suspension of your accrued rights, but you can catch up later with a penalty. Accrual works via 'insurance years': each year of premium payment counts for a full AOW right, up to a maximum of 50 years. If you emigrate after AOW age, you no longer accrue, but retain existing rights. Tip: declare your foreign income honestly via the 'AOW Premium Voluntary Insurance' form. Adjustments apply in case of divorce or death of partner. Upon return to the Netherlands, the premium is automatically discontinued. Keep your address updated via the Personal Records Database. This prevents disputes with the Tax Authorities and SVB regarding your pension accrual.