Skip to content

Completing Dutch pension reform

12 August 2021

“Latest pension reforms complete the shift from defined benefit to defined contribution pensions”

The past 20 years have witnessed a clear shift in Dutch occupational pensions: from strongly collective defined benefit to more individual defined contribution schemes. First, we show how the way is paved for a collective defined contribution contract that features some individual elements. Then, warn that the reform may fail to deliver a pension contract that is easier to understand. Finally, we caution that pension cuts due to the poor performance of financial markets could become a thorny issue.

Read one pager

 

Key Takeaways for the Industry

  • Many people do not understand the current scheme, and the reform may fail to deliver a pension contract that is easier to understand.
  • Pension cuts due to the poor performance of financial markets could become a thorny issue should this scenario arise.

 

Want to know more?

Read the paper “Completing Dutch pension reform” bij Ed Westerhout (TiU, CPB), Eduard Ponds (TiU, APG) and Peter Zwaneveld (CPB).