Pension / Retirement

Hi and welcome to the Forum.

I'm not a tax or pensions expert, so my advice is always to speak to someone that does this for a living.

Currently, the Dutch retirement age is 67 years and 3 months, this is fixed until 2028 (link). From memory, you have to have worked 50 years in the Netherlands to be entitled to a full pension. For less than that, you get 2% p/year that you have paid into the social (AOW) fund - if you don't pay in, you get nothing. The current pension is €1,261.52 before any taxes (link), so if you landed today and worked the next 20 years, then 40% of €1,261.52.

Assuming you have some kind of pension entitlement in SA, that would be assessed as overseas income by the Dutch Belastingdienst; there is a tax treaty in place between SA and NL, so I'd recommend you read it, this link will take you to the starting point, there are further links at the end that will take you to all the individual treaties.

One last comment; pensions are what I call a "political benefit", in other words, dates and amounts are decided by politicians, so these things can change.

I hope this helps.

Cynic

Expat Team

PS - this link will take you to the Numbeo website; it goes into great detail about how much it costs to live in many places around the world - it's always a few months behind the curve, but it will give you an idea about the cost of things.

I know a few couples that have retired (You can retire at any age) early but you need the means to support yourself until you get a pension. But 45 is a pretty young age to retire unless you have small fortune hidden somewhere.

I know a few couples that have retired (You can retire at any age) early but you need the means to support yourself until you get a pension. But 45 is a pretty young age to retire unless you have small fortune hidden somewhere.
-@SimCityAT

Good point.

I originally retired at age 40 ( I had a life, index-linked pension at that age); my wife could earn more than I did before retirement, so I didn't actually need to work.  I think I last about 6 months before I was climbing the walls with boredom and I went back to work; 27 years later I'm now properly retired and am glad that I decided to go back to work.

One thing to consider is Health Insurance; it's compulsory and is deductible from your salary; how will you pay if you don't work?

I know a few couples that have retired (You can retire at any age) early but you need the means to support yourself until you get a pension. But 45 is a pretty young age to retire unless you have small fortune hidden somewhere.
-@SimCityAT
Good point.

I originally retired at age 40 ( I had a life, index-linked pension at that age); my wife could earn more than I did before retirement, so I didn't actually need to work. I think I last about 6 months before I was climbing the walls with boredom and I went back to work; 27 years later I'm now properly retired and am glad that I decided to go back to work.

One thing to consider is Health Insurance; it's compulsory and is deductible from your salary; how will you pay if you don't work?
-@Cynic

Yes, I forgot about health insurance, but surely you can have private health insurance? BUT that can be costly?

I know a few couples that have retired (You can retire at any age) early but you need the means to support yourself until you get a pension. But 45 is a pretty young age to retire unless you have small fortune hidden somewhere.
-@SimCityAT
Good point.

I originally retired at age 40 ( I had a life, index-linked pension at that age); my wife could earn more than I did before retirement, so I didn't actually need to work. I think I last about 6 months before I was climbing the walls with boredom and I went back to work; 27 years later I'm now properly retired and am glad that I decided to go back to work.

One thing to consider is Health Insurance; it's compulsory and is deductible from your salary; how will you pay if you don't work?
-@Cynic

Yes, I forgot about health insurance, but surely you can have private health insurance? BUT that can be costly?
-@SimCityAT

The monthly healthcare premium is 120 euro p/person (kids are included in their parent's policy), that's for the Basis Paket; you then have to pay the first 385 euro p/annum of any prescription; you must be able to buy in, but if you work, the deduction is compulsory.  I recall from my father-in-law that things like glasses and hearing aids are not covered.  I recall there is a possibility to opt out entirely, but the moment you need any kind of treatment, that right to opt-out is withdrawn and you get charged.  Useful link here.