The costs of Dutch pension funds have increased in the last decades. The costs, as a percentage of assets invested, doubled between 1992-2009. In 2014 total costs equalled 6.3 billion euro, or 19.6% of annual contributions. Asset management is the largest component of costs. Pension funds claim that the costs are necessary for financial performance. Using a unique data-set of Dutch pension funds, the effect of costs on performance is estimated. The hypothesis that higher costs do not lead to better financial results cannot be rejected.