Building up a pension as an entrepreneur

Consequences of the new pension act

On 1 July 2023, the Future of Pensions Act (in Dutch) took effect. This law starts with a transition period of several years. During this period, agreements will be made to adjust existing pension schemes. The new law gives self-employed profeesionals more opportunities to build up extra pension in a tax-friendly way. On 1 January 2028, existing pension schemes must be adjusted and the law will enter into full effect.

General Old Age Pension (AOW)

The basis for your pension is the General Old Age Pensions Act (AOW). Everyone who lives or works in the Netherlands is automatically insured through this national insurance scheme. Even if you have no income, you build up AOW. The benefit starts in the month after you reach your retirement age.

State pension age

Until 2027, the state pension age will be 67. From 2028, it will be 67 years and 3 months. The retirement age is linked to the average life expectancy.  You can calculate your state pension age at www.svb.nl.

Additional funds

The AOW benefit gives you a basic income once you reach the retirement age. A supplement to the AOW sometimes comes from pension funds you are obliged to join. This is called the second pillar. And of course, you can also arrange your own pension accrual. This is called third-pillar pension accrual.

Mandatory pension funds

Are you active in one of the following professional groups or business sectors? Then mandatory participation in a pension scheme applies to you as a self-employed person. The actual activities of your business determine this. Based on the description of your activities, you will receive an activity code (SBI code) upon registration in the Business Register. Regularly check if your recgistration is still up to date and update it if necessary. Pension funds use the SBI code to determine if you are required to participate in a fund, but you are responsible for signing up to a pension fund yourself.

• Painting, glazing, and finishing companies
• Natural stone, terrazzo/flooring and plastering and finishing companies
• Pharmacists
• Veterinarians
• Physical therapists
• Midwives
• General practitioners
• Medical specialists
• (junior) notaries
• Maritime pilots
• Stevedores in the Rotterdam Port area

Experiment: pension funds open up to entrepreneurs

As part of the Future Pensions Act, pension funds have been allowed to start a five-year experiment since 1 July 2023. This will allow you, as an entrepreneur, to voluntarily build up a pension with your sector's pension fund. Then you participate in the same pension scheme as employees in your industry. There are no entry requirements and no medical examination.

If the experiment fails, you will not be able to continue to build up a pension with the fund. You can then choose to leave the deposited amount, or request to have it transferred to an annuity account. Naturally, you can continue accruing a pension individually, as under the continuation scheme.

Voluntary pension schemes

Besides the mandatory schemes, you can also build up your own pension. There are various options to do so, supported by a tax exemption.

You get a tax benefit when you buy such a pension product. The maximum amount on which you get tax relief is called annual margin. Read at the bottom of the article how to calculate the annual margin (jaarruimte). Have you not used (the maximum) annual margin in recent years? Then the remainder has become reserve space. Since 1 July 2023, you may still use the reserve margin up to 10 years back.

Pension for self-employed professionals ZZP

Self-employed professionals can take part in special voluntary schemes to accrue a pension, offered by multiple different pension providers.

Continuation of employee pension scheme

If you start building up a pension as a salaried employee and leave the company, you can sometimes continue accruing a pension under your former employer's pension scheme voluntarily. You will have to pay your full pension contribution yourself. This pension contribution is tax deductible for the first 10 years. You apply for the voluntary continuation within 9 months of ending your employment. For more information, contact your former employer or pension administrator.

Annuity and bank savings

You can also arrange your pension with an annuity insurance or via a blocked bank savings account. Then you pay an amount periodically (e.g. monthly), a premium, or you deposit a lump sum (purchase price) with an insurer or bank. This deposit is deductible up to a certain amount. With the Rekenhulp Lijfrentepremie (Calculation Tool Annuity Premiums, in Dutch) you can calculate the maximum deduction. You do not (yet) pay any income tax or wealth tax on the money you save in an annuity.

With the premiums or the purchase price you build up capital to buy an annuity later on. There are different types of annuities. There are fixed-term annuities, annuities that end at your death and annuities that your dependants will receive when you die. Which annuity is most suitable for you depends on your personal wishes and circumstances. Consult a specialised adviser about this.

The payments from the annuity are taxed in box 1 of the income tax (in Dutch). The insurer or bank will deduct this tax from the payments.

Saving for your pension yourself

You can also save or invest for your pension privately. The capital you accrue is taxed for income tax in box 3 (in Dutch). Part of your capital is tax-free, called the heffingsvrij vermogen in Dutch. If you save money yourself, it is not fixed. You can use it how you want to. 

The tax-free retirement reserve (FOR)

Until 2023, you could set aside part of your profits for a tax-free retirement reserve (FOR, in Dutch). From 2023, you can no longer build up FOR. The FOR reserves you built up previously will continue to exist and will be settled according to the old rules.

Calculating your pension

Want to know how much pension you have accrued so far? Visit Mijnpensioenoverzicht.nl to check the current status of your state pension and any pension you accrued with former employers. You need a DigiD to sign in. This website retrieves information from almost all pension funds, but does not show any information about the pension you accrue as a self-employed professional (unless you are required to participate in a pension fund).

Making ends meet?

Whether you will be able to make ends meet after retirement depends just as much on your needs, wishes, and plans as on how much you have saved. Nibud’s roadmap (in Dutch) is a useful tool that you can use to calculate how much to put aside now to be ready for the future.

Key considerations

Your life is full of events that may affect your pension and your retirement. The Dutch government initiative Wijzer in geldzaken (Money Wise) has created its Later goed geregeld tool (Affairs in order, in Dutch) to provide personalised tips tailored to your life.

KVK Insurance Check

With insurance, you can buy coverage for certain risks that you will have to deal with as an entrepreneur. Use the KVK Insurance Check to see what insurance you need.