Personal Finance Q & A

Your queries answered by DOMINIC COYLE

Can I claim my Dutch pension here?

Q

I am an Irish citizen living in the Netherlands for the past 15 years. As a registered tax payer I have been paying tax and social contributions during this time to the Dutch government. For the past six years I have been self-employed and continue to pay my social contributions and tax. Am I entitled to a State pension in the Netherlands as an Irish citizen within the EU?

If I move back to Ireland on retirement, would I be entitled to a State pension there?

- Mr PMcC, Amsterdam

A

The simple answer is that you are entitled to a State pension in the Netherlands on the back of your time working there.

The Dutch old age pensions act (AOW) provides that you receive 2 per cent of the full AOW pension rate for every year you work and pay tax in the Netherlands between the ages of 15 and 65. As an example, if you were retiring now, with 15 years work in the country behind you, you would receive a pension worth 30 per cent of the full rate.

To give you a clearer idea of what that might amount to, the pension rates for 2011 in the Netherlands are €1,034.38 per month for a single person and €710.51 per person for people living with a partner. Under Dutch pension law, a partner could be a spouse, civil partner, a friend, sibling or even a grandchild – it is the person with whom you share the household costs.

Assuming you stay in the Netherlands, and are therefore registered with a local municipality, you should automatically receive a claim form for your pension six months before you turn 65. Otherwise, you will need to submit a pension claim. The Sociale Verzekeringsbank (svb.nl) can provide further information.

Bear in mind that you could also be entitled to an occupational pension for the time you worked for your employer in the Netherlands. You will need to check back with the employer to ascertain your entitlements.

If you move back to Ireland on retirement, you would be able to receive that Dutch pension here. However, any entitlement to a separate Irish pension would be determined by the number of years you had worked here and made PRSI contributions. Otherwise you would be eligible only for a non-contributory State pension. This is means-tested and likely to fail with your Dutch pension.

Could An Post savings be in danger?

Q

I know you do not have a crystal ball but in view of the debt management, could An Post savings (bonds and certificates) be in any danger? One is mindful of the pension funds?

- Mr AR, Dublin

A

Ah, for a crystal ball. Seriously though, while one is always mindful of pension funds, I do not believe there is any danger to funds currently held in An Post savings certificates and bonds. These savings are guaranteed by the State and there is no threat to that guarantee.

Given how hard Europe has worked to ensure that not even the financial basket case that is Greece defaults, it is difficult to foresee any situation where our EU peers would put Ireland into full default and seize all State-guaranteed funds.

This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into. Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@ irishtimes.com