Three sources of retirement income
AOW is the statutory basic pension. Insured years and living arrangements help determine the amount. Full AOW for someone living alone is not the same as the per-person amount for a married or cohabiting couple. Amounts change half-yearly. A workplace pension follows an employment pension scheme. An individual annuity is an additional provision with an eligible provider.
Contributions and taxation
Workplace contributions are dealt with through the pension scheme. You cannot deduct the same premium again as an annuity contribution. For a qualifying annuity, personal annual and reserve allowances determine deductible paid contributions. A blocked annuity savings account is also an annuity product. Ordinary savings and investments have different tax rules.
Payment conditions also differ. An insurance annuity and a bank annuity can have different durations and consequences on death. Check the contract and tax conditions; the label alone does not establish what payments you will receive.
Access and retirement choices
Pension assets and annuity funds are not ordinary accessible savings. Early withdrawal can have tax consequences, with exceptions depending on the product and situation. Before surrendering a product, ask about tax and any revision interest.
As at 27 October 2026, the general right to take up to 10% at retirement as a lump sum is not yet available. The government announcement of 16 June 2026 gives 1 January 2029 as the start. Do not present it as a current choice. Check the conditions for your pension or annuity at the actual start date.
Build one income overview
List expected AOW, every workplace pension and annuity payment with start dates and durations. Compare gross and net income and your partner’s rights. Distinguish guaranteed payments from projections. For financial product advice, consult an appropriately authorised adviser directly.
Frequently asked questions
Is full AOW the same for everyone?
No. Living arrangements affect the amount; insured years determine whether you receive full or partial AOW.
Are bank savings always freely accessible?
No. An annuity savings account is blocked and has tax conditions. It differs from an ordinary savings account.
Is the 10% lump-sum option already available?
Not as at the review date of 27 October 2026. The announced start date is 1 January 2029.
Sources and reference date
Reference date: 27 October 2026. Check current conditions before making a decision.