How do you accrue pension?

drie_pijlers.png You accrue pension in three ways:
  • A. AOW: this is state old-age pension that you receive from the government if you have resided or worked in the Netherlands.You can read more about AOW at
  • B. Pension with Bpf MITT. You accrue this pension via your employer. This is what this Pension 1-2-3 is about.
  • C. Pension that you arrange yourself.Examples include an annuity or a tax-efficient blocked bank savings account.

You accrue a part of your pension every year. The pension that you accrue this way is the sum of all those parts. You receive this pension for as long as you live after your retirement date. This is referred to as an average pay scheme.


You accrue a portion of your final pension every year. This is not calculated on your full gross salary. In 2019, you will not accrue any pension over € 15,482.00. This 'threshold amount', known as the deductible, is roughly equal to the state old-age pension payment (AOW) that you will receive from the government once you reach AOW retirement age. In 2019, you will accrue 1.60% pension on your gross salary minus the deductible


You pay a contribution towards your pension every month. Your employer does the same. With Bpf MITT, you pay 8% of the pension base and your employer pays 16%. Check with your employer whether and/or how much they pay. Your contribution is shown in your payslip.