Never before did the cost of the pension increase as hard as this year. This is what the FD writes after examining the contributions of pension funds. Increases in the pension premium by 10% or more are no exception. In addition, with many funds for their higher premium, employees get less pension. The cause is the low interest rates and lower expected returns of pension funds.
39 out of 44 sectoral pension funds in the Netherlands have become more expensive this year. That affects about five million Dutch people.
Most funds charge a premium of 25 to 30 percent. This means that the Dutchman now works on average one and a half days a week for the pension. Five years ago, the premium was usually around 20 percent.
The increase in premiums is due to the sharp fall in interest rates and the need for funds to take into account investments that will yield less. If funds do not allow the premium to rise and yet promise high pensions, their coverage will go down.
In order to avert this danger, even greater increases in premium than was the case this year, writes the FD. But that is no longer possible in most sectors.
New pension system
We are now working hard on a new pension system, which will be introduced in 2026. Until then, there will continue to be favourable rules on the coverage of pension funds. As a result, there is a high probability that pensions will not have to be reduced. In the new scheme, the coverage ratio no longer determines whether pensions should be cut.