Withdrawing Old-Age Pension for Residents of Leiden
As a resident of Leiden, withdrawing your old-age pension marks the start of your retirement period. This includes the government's AOW and possibly supplementary pension from your employer or fund. It is usually paid monthly from AOW age, but options for early withdrawal or a lump sum are available. Learn how Leiden residents can arrange this optimally with local support.
What is old-age pension for Leiden residents?
Old-age pension is the benefit payable upon reaching retirement age. It comprises the government's basic General Old Age Act (AOW) plus pension accrued through employers. In 2024, AOW is €1,461.85 gross per month for singles in Leiden (half for partners). Supplementary pension depends on your scheme.
Withdrawal occurs automatically at the correct age, but you can influence the timing and form. This article covers the rules with examples from Leiden practice and tips, including assistance from the Legal Aid Office Leiden. More about lump sum pension withdrawal.
Legal frameworks
The rules are set out in various laws:
- General Old Age Act (AOW): Chapter II, Article 15 et seq. Determines AOW age (67 years and 3 months in 2024) and benefit.
- Pension Act 2023: Replaces older laws; Articles 1-100 cover accrual and payout of supplementary pension.
- Social Insurance Bank (SVB): Administers AOW (AOW Implementation Decree).
- Pension fund: Own rules, approved by De Nederlandsche Bank (DNB).
Indexation is mandatory if sufficient funds are available (Pension Act art. 119), which is relevant for Leiden pensioners.
When to withdraw old-age pension in Leiden?
Standard is at AOW age; SVB sends a letter three months in advance. For supplementary pension: check your Uniform Pension Overview (UPO).
Early withdrawal
AOW cannot be taken early, but supplementary pension often from age 60-62. Downside: discount of 4-7% per year.
Deferral
Defer up to 5 years after AOW age for a higher amount (up to 5.4% extra per year).
| Option | Age | Benefits | Drawbacks |
|---|---|---|---|
| Standard | AOW age | Full benefit | - |
| Early | 60-65 yrs. | Earlier access to funds | Discount, shorter duration |
| Deferral | +5 yrs. | Higher monthly amount | Risk of no benefit if early death |
Forms of payout
Monthly lifelong: Standard; ceases on death.
- AOW: Paid directly to account.
- Supplementary: Often aligned with AOW.
Lump sum: For small pensions (< €592.51 gross/year in 2024, Pension Act art. 116). Otherwise high-3/high-5 rules apply at funds. In depth: Lump sum pension.
Partner and orphan benefits: Automatic.
Leiden practice examples
Example 1: Ms Jansen from Leiden-Zuid (born 1957) reaches AOW age of 67 years and 3 months. She receives €1,171.50 AOW (partner rate) + €800 supplementary = €1,971.50 net/month. Standard option.
Example 2: Mr De Vries from Merenwijk wants to start at 62. Fund applies 6% discount: €1,200 becomes €840. Tax benefits, but higher tax later.
Example 3: €400/year from old fund: Automatically paid as lump sum to Leiden resident.
Your rights and obligations
Rights:
- UPO and information via fund/SVB.
- Indexation where possible.
- Reclaim up to 2 years.
Obligations:
- Notify address changes to SVB/fund and Municipality of Leiden.
- Check IBAN details.
- File tax return (taxable income).
On moving abroad: AOW usually continues.
FAQs for Leiden residents
Can AOW start earlier?
No, fixed at AOW age. Supplementary often possible, with reduction.
Working alongside pension?
Yes, unlimited since 2015 (Act on lowering pension reference age).
Tax return to Tax Authorities?
Yes, box 1. Annual statement from fund/SVB.
In case of divorce?
Via partner pension or equalisation (Pension Act art. 37); arrange via District Court Leiden.
Tips for Leiden residents
- Check UPO one year before AOW via mijnpensioenoverzicht.nl.
- Financial advice: Early withdrawal often not advantageous.
- Build reserves for the transition.
- Ensure partner pension coverage.
- Problems? Contact fund first, then Kifid/DNB or District Court Leiden. Free initial advice at Legal Aid Office Leiden.
Related: AOW age, Pension indexation.
This overview (~1,200 words) helps Leiden residents. For personal advice: Legal Aid Office Leiden or Municipality of Leiden.