Retirement Planning as American Expat in Netherlands
When we moved to the Netherlands at ages 36 and 40, we had to completely rethink retirement.
We'd been saving in 401(k)s and IRAs for 15 years. Now we couldn't contribute anymore. We were building Dutch pension credits. Two tax systems to manage. Everything was more complicated.
The Challenge
Retiring as an expat means dealing with two systems that don't talk to each other.
US side:
- Can't contribute to 401(k) or IRA (using FEIE)
- Existing accounts just sit and grow
- Social Security credits still accumulating
Dutch side:
- Building AOW (state pension) credits
- No employer pension (self-employed)
- Different rules, different tax treatment
Our Approach
We're not giving up on retirement savings. We just had to find new ways.
Since we can't use tax-advantaged accounts, we invest in taxable brokerage accounts. Less tax-efficient, but flexible and accessible from anywhere.
Current strategy:
- Leave US retirement accounts alone (let them grow)
- Build Dutch AOW credits naturally
- Save aggressively in taxable investments
- Plan for multiple income sources
What We've Learned
Don't cash out retirement accounts. The tax hit (plus 10% penalty) destroys decades of compound growth. Not worth it.
Keep saving even without 401(k). Taxable accounts work. The important thing is to keep building wealth.
Currency diversification matters. We have income and investments in both dollars and euros. Protects against either currency weakening.
Healthcare is a factor. Dutch healthcare is excellent and affordable. US healthcare is expensive. This affects where we might retire.
For Social Security planning, see Social Security benefits while living in Netherlands.
Where Will We Retire?
We don't know. And that's okay.
Our plan works anywhere:
- US Social Security: receive anywhere
- 401(k)/IRA: access from anywhere
- Taxable investments: access from anywhere
- Dutch AOW: receive anywhere (if we qualify)
We're staying flexible and building wealth that works in any scenario.
Learn about specific retirement accounts in what happens to your 401k living abroad and IRA contributions from Amsterdam.
The Details
There's a lot to consider: Roth conversion strategies, WEP provisions, tax-efficient withdrawal order, healthcare at different ages.
Our guide includes our complete retirement planning strategy with actual numbers. Get the Guide →
Digital Guide — $199
We're not financial advisors. Consult a professional for your specific situation.