Completing Dutch pension reform
-
Ed Westerhout
-
Eduard Ponds
-
Peter Zwaneveld
“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.
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.
