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It is possible that people do not receive a supplementary pension from their employer because there is no obligation for employers to make pension commitments to their employees.

Alternatively, it may be because people have not been engaged in paid labour or were self-employed.

AOW benefit: domestic situation The AOW benefit is a fiat-rate one based on the net statutory minimum wage.

The amount of the benefit does not depend on any former income or on contributions paid in the past.

Various types of pension provisions In the Netherlands there is a mixed system of public and private provisions.

Public means that the provisions are regulated by law, private means that the provisions are regulated by the employer or that people, individually, make pension arrangements with an insurance provider by buying an annuity insurance or endowment insurance.

Those people can opt to supplement their AOW benefit by arranging individual pension provisions, such as life insurances, a fiscal old age reserve for entrepreneurs, and endowments.

More information on current developments on pensions in the Netherlands can be found on the international website of the Dutch government::

In per capita terms, the Netherlands has one of the largest pension reserves in the world.

The third pillar includes the personal annuities offered by insurance providers, supplementary to the AOW and/or the occupational pensions.

The Dutch pension system guarantees that everyone aged 65 and over enjoys a decent standard of living and will continue to do so in the future.

In comparison with other countries, the basic old age pensions account for a minor part of the total provisions for old age.

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