Netherlands faces demographic shifts in mortgage debt and retirement

Dutch homeowners in their 40s face significant financial pressure as interest-only mortgages approach their expiration dates. Data from De Nederlandsche Bank (DNB) indicates that nearly 45 percent of total Dutch mortgage debt is interest-only. Between 2035 and 2038, approximately 700,000 households will see these loans expire, coinciding with the end of mortgage interest tax deductions for those specific contracts.

This demographic is particularly vulnerable because 40-to-45-year-olds hold the highest average mortgage amounts, averaging €419,691 in 2024. Homeowners must navigate the tension between repaying these large debts and building sufficient pension savings to ensure future financial stability.

Separately, Statistics Netherlands (CBS) reports a growing trend of employees continuing to work past the state pension (AOW) age. As of the second quarter of 2026, 1.7 percent of all employees were older than the AOW age, up from 1.2 percent in 2018. The real estate sector shows the highest rate of post-retirement employment at 4.3 percent, followed by transport and storage at 3.6 percent. While financial incentives play a role for some, research from NIDI suggests many continue working for personal fulfillment and to remain active.