What HR Managers need to know about the Dutch pension reform – especially for international talent

The Netherlands is undergoing a major transformation of its pension system. As an HR manager working with international employees, it is essential to understand how these changes affect your workforce, especially expats and highly skilled migrants (kennismigranten).

From defined benefits to personal pension pots

After the Dutch pension reform (as decided in the Wet Toekomst Pensioenen), all pension schemes will shift from traditional defined benefit models to defined contribution schemes. This means:

Each employee builds up a personal pension pot.
The final pension depends on contributions, investment returns, and market conditions.
Pension outcomes may fluctuate, but buffers are introduced to limit downside risks.

What the Dutch pension reform means for expats and Highly Skilled Migrants

1. Greater transparency and portability: Expats can now see exactly how much they have saved and how their pension is performing. This is especially useful for those with short-term contracts or international careers.

2. Flexibility when leaving the country: Pension rights are preserved and can be transferred or managed even after leaving the Netherlands.

3. Partial AOW for short-term residents: The state pension (AOW) is built up over 50 years of residency. Expats who stay for shorter periods will receive a pro-rated AOW, which remains unchanged under the new system. This is even the case after departure from the Netherlands.

Close-up of a hand holding euro banknotes of different denominations, taken from a black wallet.

Transition rules

The transition to the new system must be completed by January 1, 2028, with most employers required to submit a transition plan by October 1, 2026 (for insured schemes).

More info on what you have to do

Please have a look at Pension Reform Netherlands to know which steps you have to take when.

How the Dutch pension reform relates to Anywr Netherlands

For HR professionals managing international hires, the new Dutch pension reforms add another layer. While Anywr Netherlands doesn’t provide pension advice, we do support HR teams with immigration and relocation services that ensure a smooth transition for foreign employees. By helping your international staff settle quickly and confidently, we create the foundation for long-term retention.

More info

Do you want to know how Anywr Netherlands can assist your company and your international employees? Just send us a note on info.nl@anywr-group.com and we’ll respond within one business day.

What is the main change in the Dutch pension system?

The system is shifting from Defined Benefit (DB) to Defined Contribution (DC). Instead of promising a fixed pension amount, the new system builds personal pension capital based on contributions and investment returns.

Why was the pension system changed?

The old system was no longer sustainable due to:
– Longer life expectancy
– Fewer workers per retiree
– More flexible career paths (e.g. job changes, self-employment) The new system aims to be more transparent, personal, and adaptable to modern work life.

Is the pension contribution still age-related?

No. The new system introduces a flat-rate contribution, meaning all employees contribute the same percentage of their salary, regardless of age.

What is the deadline for transitioning to the new system?

All pension schemes must be adapted by 1 January 2028. Employers, pension funds, and insurers must prepare and implement transition plans before this date.

Will pensions become more volatile?

Yes. Since pensions are now based on investment returns, they may increase or decrease depending on market performance. However, buffers and solidarity mechanisms aim to limit volatility.

What changes apply to the survivor’s pension?

Survivor’s pensions will be based on a percentage of the employee’s salary, regardless of how long they’ve been employed. This makes coverage more consistent and predictable.