What is the Flex Pensioen?

Flex Pensioen means that a person who becomes entitled to an old-age pension from SVb is also entitled to postpone the payment of their old-age pension for one year at a time. For example, a person can choose not to receive payment of the old-age pension when they reach their pension age and can start receiving it after one year of postponing. Each following year the pensioner can again decide to postpone the pension for an additional year. This can be done for a maximum of five times.

What is the benefit received in exchange for postponing my pension?

Each year a person postpones their old-age pension, the amount of their pension accumulated up to that point increases by 7%.

Here is an example of a single person’s pension. When he reaches the pension age, he is entitled to AWG 1.215,- per month. He decides to postpone his pension. The following year his old-age pension increases by 7% of AWG 1.215,- and it will become AWG 1.300,- per month*.
If the person decides to postpone the pension once again, it will continue to increase by 7% of AWG 1.300,- and become AWG 1.391,- per month*. The following table shows how the single and married pensions increase when postponed*.

Monthly Pension Single Person*
Monthly Pension Married Couple* Monthly Pension Married Couple Divided*
Pension Age base sum 1.215,- 2.046,- 1.023,-
Pension Age base sum + 1 year 1.300,- 2.189,- 1.094,-
Pension Age base sum + 2 years 1.391,- 2.342,- 1.171,-
Pension Age base sum + 3 years 1.488,- 2.506,- 1.253,-
Pension Age base sum + 4 years 1.592,- 2.6813,- 1.340,-
Pension Age base sum + 5 years 1.704,- 2.869,- 1.434,-

*The mentioned sums above are approximate and also a projection of the actual situation, and may vary depending on the individual circumstances of the retiree who wishes to make use of the Flex-Pension.

If my spouse starts collecting old-age pension upon reaching pension age before me, can I postpone my pension part to get more?

Yes, in case your spouse started collecting an old-age pension, at the moment you reach the pension age, you have the right to postpone your part of the pension to which you are entitled. For example: Your spouse reached pension age and is receiving AWG 2.046- per month pension. When you reach pension age, you become entitled to AWG 1.023,- of AWG 2.046,-. If you postpone your pension it will increase by 7%. The following year your pension amount will be AWG 1.094,- per month

A couple is allowed to postpone a maximum of 5 times. Each time either postpones it counts towards the total allowed times of five. For example, if the partner who reached pension age earlier already postponed two times, the other partner is allowed to postpone his pension only three times. Together the couple will have postponed a total of five times.

What do I need to do to postpone my pension?

When you apply for the old-age pension, you can indicate that you want to make use of the Flex-Pensioen and postpone it. In the first year, you must indicate on the application form that you will make use the Flex-pensioen arrangement.
For the following year(s), if you wish to continue to postpone you must contact the Pension Department before the last month of the postponed pension. If the next year is entered without a postponement notice, you can no longer make use the Flex-pensioen arrangement and will begin collecting the pension.
Take notice that your pension entitlement begins the month after you reach pension age. For example, if your birthday is in January, your pension entitlement starts on February 1st.

Can everyone decide to postpone their pension?

Yes, anyone who meets the requirements for an old-age pension can decide to postpone their pension.

Can I revoke the decision during the process if I postpone my pension?

No, during the year that the person postponed the pension, one cannot revoke it.

If I submit my pension request after I reach the pension age, can I still postpone the pension?

No, to postpone the old-age pension, one must submit the request for postponement at least one month before reaching the old-age pension age.

If I am of pension age or older and working, and I postponed my pension, do I have to pay AOV premium?

No, after you reach pension age, under no circumstances do you pay AOV premiums.

More information

For more information, contact the Pension Department through our contact form: https://www.svbaruba.org/pension/contact-pension/?lang=en.