How do you accrue pension?

You accrue pension in three ways:

A. AOW: this is state old-age pension that you receive from the government if you have resided or worked in the Netherlands. You can read more about AOW at www.svb.nl.
B. Pension capital that you accrue in the Payroll Scheme at Flexsecurity. You accrue this pension via your employer. This is what this Pension 1-2-3 is about.
C. Pension that you arrange yourself Examples include an annuity or a blocked bank savings account.

Contributions are deposited every month in your name in the fund’s investment account. The deposit percentage of the contribution is 13.4% (2025) of the pension base. These contributions and the returns made on them form pension capital. You use this capital to purchase a retirement and partner’s pension on your retirement date. We call this a defined contribution scheme.

The defined contribution is determined on a portion of your gross hourly rate. It is not calculated on your entire salary, as we already take the AOW into account. The portion of your salary over which no defined contribution is calculated is called the threshold amount or the ‘deductible’. The deductible for 2025 is €18,475 per year. The defined contribution is calculated on your gross pay minus this deductible.

For the accrual of your pension capital in the Payroll Pension Scheme, your employer pays 15.0% of the pension base and you pay 1% of the pension base.