AOW bridging pension
If you choose to start your pension before reaching State Pension (AOW) age, you can choose an AOW bridging pension.
This pension is paid from the date your pension starts until you become entitled to a State Pension (AOW) benefit. You can check your State Pension (AOW) age on the SVB website.
How does the AOW bridging pension work?
If you choose an AOW bridging pension, part of the pension capital intended for your old-age pension is used to provide a temporary AOW bridging pension.
If only part of your old-age pension starts, the AOW bridging pension will be adjusted proportionally.
Your pension remains variable. However, until you reach State Pension (AOW) age, your variable pension is increased by an amount equal to the monthly AOW benefit that applies in that year for either:
a single person; or
a person with a partner.
Because AOW benefit amounts change from year to year, we will inform you of the applicable amount when you apply for your pension.
What should you consider before making your choice?
Once you reach State Pension (AOW) age, your lifelong variable pension may be significantly lower because the AOW bridging pension is paid from your own personal pension capital.
A higher pension income may also result in:
paying more income tax; and
a reduction or loss of housing allowance and/or healthcare allowance.
For this reason, we recommend that you seek advice from a financial adviser or contact us for further information before making your choice.
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