Question: Why are we having new pension rules anyway?

ANSWER:

Clearer and more personal pension
At the moment many people feel it is unclear how much they are paying for their pension and what it will ultimately bring them. Under the new Dutch system everyone will be accruing a pension capital. This capital will be funded by employer and employee contributions. This money will be invested (as it is now).

As a member, in the future you will be able to see how much money has been paid in altogether as well as the investment return on your pension capital. As a result there will be a capital sum which will be used to purchase a pension entitlement.

Pensions may go up faster than they do now
In recent years we sometimes had the situation of the economic growth in the Netherlands, but many pension funds being unable to (fully or partially) increase pensions. In the future however pension funds will no longer need to hold large reserves. As a result, pensions may go up faster if the economy is doing well. The opposite is also true: (expected) pensions may also go down faster.
The level of future pensions will – unlike now – no longer be fixed.

Q&A: My pension is going to develop more in parallel with the economy. What does this mean?

Q&A: Much is about to change, but what is not actually changing?

 

April 2024