Marriage is becoming less and less popular in the Netherlands. Couples in their twenties and thirties are increasingly opting for a registered partnership or cohabitation with or without a cohabitation contract. If you choose to live together in this form, what are the implications for your pension? And what if your relationship ends?

Dutch marriage law was changed with effect from January 2018: community of property no longer automatically applies to couples who get married without a prenuptial agreement. Instead, their property is now joined in a limited community of property, which means both partners retain their own assets and assets they inherit no longer automatically fall into their community of property. The new law fosters financial awareness and autonomy. Many unmarried couples say they are aware that cohabitating without an appropriate contract can imply financial risks. By and large, unmarried couples tend to prepare for only some of the financial risks involved.  For example, couples usually make arrangements to cover parental authority over their children, but 70% say they haven’t signed any documents to ensure a fair division of their shared house should their relationship end. 

For better ….
Sharing your life with the one you love is a wonderful thing. However, marriage, registered partnership and cohabitation have an impact on your financial situation, and particularly your pension. All marriages or registered partnership entered into the Netherlands are automatically reported to the pension fund by your municipality. Your partner will be entitled to a partner pension if you pass away while you are employed by the company. However, this is not automatically the case if you are cohabitating. So if you decide to cohabitate, make sure you report your partner to your pension fund by submitting the Form for registration of your partner. To qualify for partner pension, you and your partner must meet certain requirements, including:

• Submission to the pension fund of a copy of your cohabitation contract (endorsed by a civil law notary if applicable).
• Evidence that you have been living together at the same address for at least six consecutive months and are both registered there, by way of a recent extract from your municipal registry.
• If you have demonstrably been cohabitating for more than five years, you won't need to submit a cohabitation contract.

ING CDC Pensioenfonds has laid down these requirements in article 16 of its pension regulations. More details can be found in these regulations.

A survey held by the Money Wise Platform has revealed that very few people who move in with their partner make arrangements to cover their mutual financial situation. Are you living with your partner or considering doing so and would you like to have more insight into your financial situation? Check out the online tool ‘Cohabitation - the financial side’. Your pension is an important part of your financial situation. How much pension will your partner and/or children get if you pass away? What will happen to your pension if you decide to work on a part-time basis? Do you have any former partners who are entitled to a part of your pension? How much pension will you need in order to live together comfortably when you have retired?

“I don’t see the need to get married. Having a registered partnership
feels the same to me, but I wonder
if it’s also the same when it comes to my pension.”

…. and for worse
How many couples stay together until they're old? The number of divorces in the Netherlands grew in 2017. It seems the recovery of the economy plays a role, as people have more money to make choices, including a costly divorce. When you separate, you’ll have to split your shared assets. Unfortunately, pension is usually a forgotten asset. Your municipality will report your divorce or terminated registered partnership to ING CDC Pensioenfonds. However, if you are cohabitating with your partner, you will have to report the end of your relationship to the pension fund by submitting the form ´Terminated cohabitation partnership´. What will you need to split with your former partner?

• Your Dutch state pension (AOW) is individual and does not need to be split.
• If you are married or have a registered partnership, you will have to split your ING CDC Pensioenfonds By law, your former partner is entitled to half of the old age pension that you accrued while you were married. This rule does not apply to unmarried cohabitation partners.
• Partner pension is paid out from the day you pass away. Your former partner could also qualify for surviving dependants’ benefits from ING CDC Pensioenfonds. This is referred to as special partner pension.
• If you and your partner have a supplemental pension plan, you will have to split that in accordance with the terms agreed upon between the two of you.

Important note: if you and your former partner signed a prenuptial agreement, you may have already included terms regarding the division of your pension.

For more information regarding your pension in the event of a separation, visit our website and go to the webpage Ending your relationship.

This article provides an outline of trends in society as well as some general information. Would you like to read articles relevant to other age groups? Pick your choice at the upper right side of the screen.