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 Plus 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 depends on your age. 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. We namely already take AOW into account. The portion of your salary over which no defined contribution is calculated is called the threshold amount or the ‘offset’. The offset for 2023 is €7.86 per hour. The defined contribution is calculated on your gross hourly wage minus this offset.

For the accrual of your pension capital in the Plus Scheme, the employer pays two-thirds and you pay one-third of the contribution.