Retiring and moving to a sunny country, is it still a Dutch dream? Is it feasible in view of the current Dutch pension system?

Pension in a sunny country is generally equal to retirement with a lower cost of living, where the sun is an additional advantage.
Within the current pension system, which is made up of three pillars (government-AOW, work-related pension, and private pension building), the work-related pension is currently in the spotlight due to problems with the degree of coverage (the degree In which the pension fund is able to pay for future pension liabilities).
The majority of the pension, however, comes from the AOW and not from work-related pensions, which makes this a little less relevant to the sunny foreign country dream.

The uncertainty that is present is the economic development of these countries.If this is hard, the cost of living in these countries rises, making it less attractive for that reason to stay there after retirement age.
Furthermore, in Brexit, you also see a interweaving, which has been a time-long uncertainty about British status in the rest of the EU, and other EU citizens in the UK. When the EU comes under pressure in the future, the free movement of goods and people is also under pressure, which also increases the uncertainty about the stay abroad.

Pension in a sunny country is certainly possible, provided you have the means to build an existence there and the overall pension legislation (mainly AOW, to a lesser extent also the work-related pension) does not change too much.

I do it, and I enjoy it, what Jos says: Lower life maintenance costs.But with the abolition of the salary allowance for retired people abroad as of 1 January, there is a bite from my pre-retirement to the Dutch state. I only have a small pension and that you feel instantly.

There komy at that I often have to make costs to receive the pension, as a “statement of being alive” have it draw and send out every year, that drawing is not in every country free.

And if you travel and stay on a tourist visa you will not pay any taxes and you can not ask for this money back.So I just lost that. Because I do not yet have a retirement age, my AOW is reduced by 2% per year for every year I am abroad.

That’s why I also work online.

But it is good to do, provided you choose a country where you can feel at home and what fits your income and spending pattern.

Many people go to the Philippines: very simple with visa arrangements, relatively cheap visas and very cheap in livelihoods.

On my website I write about the cost of living in that country but also about departing from the Netherlands and starting over in another country.

The links to my FB page etc. where you can also find information on this topic are in my profile.

Leave a Reply