Building a Pension as a Freelancer in the Netherlands

Why Pension Planning Matters for Freelancers

Employees in the Netherlands automatically build pension through their employer. As a freelancer (ZZP’er) you have no such safety net. CBS research shows that over 40% of self-employed workers accumulate insufficient retirement savings. The state pension (AOW) alone – around €1,380 net per month for singles in 2025 – is not enough for most people to live on.

The earlier you start, the greater the effect of compound returns. Delaying costs you tens of thousands of euros in the long run.

Option 1: Annuity Products (Lijfrente)

The most popular pension solution for freelancers is a lijfrente – a tax-advantaged annuity product. Contributions are deductible in box 1, giving you an immediate tax saving.

Calculating Your Annual Margin (Jaarruimte)

The jaarruimte determines how much you can deduct. The 2025 formula:

• 30% of the premium base (profit minus FOR release, capped at €137,800), minus any employer pension accrual.
• Maximum jaarruimte 2025: approximately €15,500.
• Unused jaarruimte from the past 7 years can be caught up through the reserveringsruimte (up to ~€8,065 extra per year).

Types of Lijfrente

• Bank savings annuity (lijfrentespaarrekening): low risk, lower returns. Best for risk-averse savers.
• Investment annuity (lijfrentebeleggingsrekening): you invest in funds or ETFs. Higher potential return, more risk.
• Insurance annuity (lijfrenteverzekering): insurer guarantees a payout. Often higher fees.

Option 2: Open Investing Outside an Annuity

Not all retirement capital needs to go through a lijfrente. You can also invest freely in an ETF portfolio. The downside: no immediate tax deduction. The upside: full flexibility – your money is not locked until state pension age. You will pay annual box 3 wealth tax on a deemed return, but over a long horizon the net result is usually attractive.

Option 3: Extra Mortgage Repayments

Paying down your mortgage early reduces your housing costs in retirement. While not a “pension product”, it is an effective way to lower fixed expenses. Note that you lose mortgage interest deduction on the repaid portion.

Fiscal Old-Age Reserve (FOR) – Abolished

Since 2023 no new FOR contributions are allowed. Existing FOR balances can still be converted into an annuity product. If you have a FOR balance on your books, discuss this with your accountant to avoid unexpected tax on cessation of your business.

How Much Do You Need?

Rule of thumb: you need approximately 70% of your current net income after retirement. On a net income of €3,500/month that is €2,450. After deducting AOW (€1,380) you still need €1,070/month from private savings – roughly €250,000-€350,000 in capital at retirement.

Start Today

At MOJKA Finance we help freelancers and entrepreneurs in Rotterdam build a concrete pension plan. We calculate your jaarruimte, advise on the right product and ensure you benefit optimally from tax deductions. Schedule a free consultation. As your expat accountant in Rotterdam, MOJKA Finance is here to help – contact us for a free consultation.