New Dutch pension contracts and lessons for other countries

This paper summarizes recent developments in Dutch occupational pensions of both the DC and DB
type. A reform of DB schemes is discussed that introduces financial assets as individual entitlements.
At the same time, the reformed schemes derive (dis)saving, financial risk management and insurance
decisions from the explicit objective of adequate and stable lifelong retirement income. In fact, the
proposed system involves not only financial assets in individual accounts but also an insurance
contract pooling longevity risks and possibly collective buffers that share systematic risks with future
pension savers. The paper identifies the strengths and weaknesses of the Dutch contract design and
draws lessons for other countries.

WordPress › Error