This rise means that there may be an ‘AOW-gat’ if you will or have retired before your statutory retirement age. Government has instituted an ‘AOW bridging arrangement’ for people suffering financial hardship on account of their having incurred an ‘AOW-gat’.
The arrangement is designed to prevent this group of people from suffering a severe drop in income between the age of 65 and the new, higher retirement age for the State Pension. Single persons with an income of up to 200% of the statutory minimum wage and married/cohabiting couples with a joint income of no more than 300% of the minimum wage may apply for a minimum-level benefit.
This arrangement will remain in force until 2019. Government has undertaken to consider extending the arrangement until 2023.
For more information and the terms and conditions of the AOW bridging arrangement, please visit the website of the Social Insurance Bank (Sociale Verzekeringsbank, SVB):
website Social Insurance Bank