The General Old Age Pensions Act (AOW) is a basic pension provided by the government for people who have reached the AOW age. This pension offers financial support to the elderly and is an important part of the Dutch social security system. In this article, we discuss what the AOW entails, how the AOW age is determined, and what discounts are available for AOW recipients.
What is the state pension?
The AOW is a benefit that you receive from the AOW age, as long as you have lived or worked in the Netherlands. The Social Insurance Bank (SVB) manages the AOW and is responsible for the payments. The amount of the AOW benefit depends on your living situation and is adjusted annually for inflation.
Reaching the state pension age
The state pension age is linked to life expectancy and may therefore increase over the years. For 2025, the state pension age has been set at 67 years. You can calculate your exact state pension age on the SVB website by entering your date of birth.
Discounts for state pension recipients
When you reach the state pension age, you become eligible for various tax credits that can reduce your tax burden. Below is a brief overview of the main credits:
Senior discount: This discount is available to anyone who has reached the state pension age. The amount of the senior discount depends on your total income. For 2025, the senior discount is a maximum of €2,035 for incomes up to €45,308.
Single elderly discount: If you receive a single state pension, you are entitled to an additional discount. For 2025, this discount amounts to €531.
General tax credit: This credit decreases once you reach the state pension age. The exact amount of the credit depends on your income.
Conclusion
The state pension provides an important financial foundation for the elderly in the Netherlands. It is essential to be aware of your state pension age and the available discounts to make the most of the benefits that the state pension offers. Do you have questions about your state pension or other tax matters? Then contact our tax advisors for personal advice.