Difference between AOW and private pension insurance in Tilburg

In Tilburg, the AOW voluntary insurance fundamentally differs from private pension insurances, especially relevant for the growing group of self-employed individuals and expats in this vibrant city. AOW is the state pension with lifelong, indexed benefits and no means-testing, ideal for Tilburg residents with fluctuating incomes from the local textile and manufacturing industry. Private products such as annuities build capital with investment risk and inheritance accumulation. AOW premium is income-dependent and tax-deductible (Income Tax Act 2001, art. 11.1), private premiums often also, but limited by annual contribution room. Local Tilburg pension advisors at Rabobank Tilburg or local notaries assist with calculations. AOW supplements basic pension up to 100%, private provides supplementary pension for a comfortable life in the Spoed District. Taxation: AOW fully taxable in box 1, private payouts partly. For Tilburg self-employed without employee pension, AOW is crucial; private offers flexibility but no guarantee. Comparison: AOW costs approximately €1,800/year for €1,200 payout, private can yield higher returns in favorable markets, fitting the dynamic economy around Tilburg University. Risk: AOW risk-free, private market-dependent. Choose AOW for AOW gap – check via SVB in Tilburg – and private for extra buildup. Combine for optimal pension. Consult Belastingdienst Tilburg for annual contribution room and Wage Tax Act for coordination. Local workshops at Ondernemersplein Tilburg offer free advice.