Cessation of employment upon the attainment of the AOW [General Old Age Pensions Act] age

Cessation of employment upon the attainment of the AOW [General Old Age Pensions Act] age
Publicatiedatum: 17 January 2019

In the case of most employees their age under the AOW is not identical to their retirement age in accordance with their pension plan. We are increasingly being asked about the cessation of employment upon one’s AOW age and its implications for one’s pension plan. Is your pension policy in line with the AOW or the retirement age? We see that most employees act on the basis of the AOW age in relation to their staff’s retirement.


No legislation or regulation exists which stipulates that an employment contract terminates upon the attainment of one’s AOW age. However, arrangements may be made for this in a collective labour agreement or an employment contract. In this case the employment contract would terminate automatically upon the attainment of the relevant AOW age. In such a case you would not need to cancel it. If nothing has been arranged, the relevant employment contract will remain in effect. As an employer you have an opportunity to cancel an employment contract on or after the relevant AOW age. You may cancel it without a preventive assessment conducted by the UWV or a court of law. However, a term of notice of one month will apply.

Bringing forward or postponing the retirement age

Where an employee ceases to be employed upon the attainment of their AOW age and their AOW benefit commences, any pension payable by an employer will not automatically follow the employee’s attainment of their AOW age. Your employee’s pension entitlements may accrue subject to different retirement ages. By bringing one’s retirement age forward or postponing it, the various times may be made to coincide with the AOW date of commencement.

Financial planning can provide your staff with an insight

It is difficult for employees to obtain a good insight into their situation in relation to retirement on their own. This is also true for the determination of the impact of bringing their retirement forward or postponing it. Our financial planners look forward to helping your staff calculate the various scenarios.

Retirement age

In December 2022 the AOW age will be 67 years and three months. If the retirement age is still 67 years as part of your pension plan, it will occur before the AOW age. In order to avoid any difficulties in relation to cover, we recommend that you raise the retirement age to 68 years before then.

More information

To obtain more information you may contact your pension consultant on our general telephone number: +31 (0)73 692 4657.