Build up pension

The earlier you start, the longer you have to build up extra pension, providing you with additional income to top up your state and workplace pensions. What’s more, the tax relief on extra pension you build up within your annual margin can be between 37.5% and 49.5%. You will, however, be liable to pay income tax and social security contributions on the payments you receive after retiring.

You can save and invest flexibly for your top-up pension, possibly with tax relief. An ABN AMRO pension account lets you choose what’s right for you. Pension savings, pension investing or a combination of both. What will you choose?

As a business owner, you must take active steps to build up a pension, so it’s a good idea to put money aside for your retirement. Start building up capital for an extra pension now, to ensure a good income for later. Find out more about how business owners and the self-employed can top up their pension.

The amount you should save for your pension depends on your personal situation. Look at your current income and expenditure. Take fixed costs such as living costs, transport and groceries into account, and don’t forget hobbies and holidays. Try to work out your pension goals. ‘Mijnpensioenoverzicht’ shows you how much state pension and workplace pension you can expect when you retire. Calculate how much you think you’ll need. The Dutch National Institute for Family Finance Information (Nibud) has put together a list of the main monthly expenses. Find out how much pension you need.

Interest rates can change, and the stock market can fluctuate. This can affect the capital you’re trying to build up for your pension. Starting early means you have longer to build up your capital and more leeway to absorb drops in interest rates or share prices. The capital you build up can only be used for your pension. A pension account is a blocked account, so you can’t withdraw the money whenever you like.

If you die, the capital you have built up in your pension account will go to your heirs. They must use the amount to buy what is known as an annuity for surviving relatives.

Opening fee
When you open your pension account, you pay a one-off fee of €49.

Costs for pension investing
For pension investing, you pay a fixed percentage in service fees on the value of your investments. Each quarter, we charge 25% of the annual percentage. You also pay costs charged by the investment fund. These include ongoing costs and transaction costs within the fund. You can find more information in the fees card.

• Pension investment fee sheet (in Dutch) (PDF, 257 KB)
• Pension investment sample profiles (in Dutch) (PDF, 69 KB)

Transfer costs
If you transfer the balance to another provider before your state pension age, you pay €150.

Lump-sum withdrawal costs
In special cases, you can withdraw the full amount at once. This is a lump-sum withdrawal. You pay €50 for this withdrawal. Please note: a lump-sum withdrawal can have major tax consequences. Get advice before you withdraw money early. It will also leave you with less pension later.

The interest rate on the pension savings account is variable. This means the bank can change the rate. The current interest rate is 1.70%. You receive interest once a year. On 1 January, the interest is added to your pension savings account.

With pension investing, you may get a higher return than with saving. This may help you build a higher additional pension. Returns are not guaranteed. Investing involves risks. You do not know in advance what your investments will yield. If you start early, you have more time to absorb setbacks. Over the long term, this increases the chance of a positive return. The value of investments can rise or fall. You may end up with less than you invested. This is because markets can move up and down.