"Responsibility for our country must now lie in the hands of a new generation," Queen Beatrix said in the speech delivered from her Huis ten Bosch palace, she will celebrate her 75th birthday on Wednesday.
"I am deeply grateful for the great faith you have shown in me in the many years that I could be your Queen," she added.
The queen's abdication from the largely ceremonial role had been widely expected, but it is sure to bring an outpouring of sentimental and patriotic feelings among the Dutch, most of whom adore Beatrix. In everyday conversation, many of her subjects refer to her simply by the nickname "Bea."
More top news
Bangladeshi immigrant Akayed Ullah, 27, is accused of strapping a crude pipe bomb to his body and detonating it during rush hour.
US tax reforms could breach international rules and damage world trade, Donald Trump has been warned by Chancellor Philip Hammond.
Other entries in the UKTV channel Gold competition included jokes about Donald Trump, Brexit, Southern Rail and Ryanair UKTV channel Gold.