The number of retirees reaches a record 3.7 million – costs exceed 51 billion euros
The number of people receiving AOW benefits in the Netherlands increased by approximately 1.9% over the past year, reaching nearly 3.7 million by the end of June, according to the Social Insurance Bank (Sociale Verzekeringsbank - SVB). The General Old Age Pensions Act (Algemene Ouderdomswet - AOW) is a basic state pension granted to residents aged 67 and over who have lived or worked in the Netherlands. Among the beneficiaries, there are about 1.1 million people over the age of 80, and 2,852 individuals who have reached or surpassed the age of one hundred.
Women make up a slightly larger percentage of beneficiaries, with their share exceeding 53% compared to about 47% for men. About 10% of AOW recipients live outside the Netherlands, mostly in Belgium, followed by Germany and then Spain.
SVB noted a steady increase in the number of people receiving a partial AOW pension, often these are individuals who have lived or worked abroad for a period, or who moved to the Netherlands later in life.
In June 2024, the number of AOW beneficiaries in the Netherlands alone reached approximately 3.6 million people, an increase of 0.8% compared to June 2023. The rising number of beneficiaries has led to a sharp increase in the total costs of this program.
In 2024, the costs of AOW amounted to approximately 51.9 billion euros. With rising expenses, the government has become increasingly reliant on tax revenues to finance pensions, with more than half of AOW funding now coming directly from the national treasury.