What are your thoughts on the future of pensions? What concerns do you have? Last year, we called on you and other participants to engage in a dialogue with us. Due to the Corona pandemic, we could not realise our idea of having a ‘live’ lunch conversation with our chairman Jochem Dijckmeester. However, in January, the first digital participants meeting about the new pension took place.
One thing we know for sure: we will do this more often.
Via the digital platform ‘Teams’, Jochem Dijckmeester spoke with five participants about the new pension. And about the non-indexation (i.e., no increase of pensions to compensate for inflation). Because that is a sensitive point for many of our participants.
We would like to share the four main points discussed during this conversation:
The pension pot is full, but still nobody gets any supplement.
We have not been able to apply indexation since 2008. This is because the well-filled pension pot is offset by a high value of future pension payments. We have to calculate this value using a risk-free interest rate. This is a legal obligation. The interest rate has fallen sharply since 2008 and is now very low. On top of this we have to maintain a large buffer. That is why we are not short of cash. But we are still not allowed to apply indexation.
Why will this be possible in the new system?
In the new pension system we accept more uncertainty about benefits. That is why the buffer is less strict and the risk-free interest rate is less important. Returns will end up with participants sooner. But: when times are bad, the pain is shared immediately and pension benefits will be reduced.
Why is it taking so long before the new system is in place?
The law still has to be amended. Then representatives of employers and employees in the sectors still have to decide which scheme they want. Also, all administrative systems and investments still have to be adjusted to the new pension. It has been agreed that the new pension will be introduced in 2026 at the latest, but if possible we will do so earlier.
What are the prospects until then?
During the transition phase, different rules for increasing and decreasing pensions will be introduced. This will make it possible to increase pensions sooner. And postpone the need to decrease pensions.
Would you also like to contribute your ideas to us?
Especially now that the new pension system is bringing about major changes, it is important to invest in exchanging ideas. Whether it concerns the new pension or socially responsible investing. Would you like to talk to our board or experts from our organisation? If so, please register via email@example.com
Would you like to contribute your ideas to us about our services and communication? Then become a member of our customer pool. You can register for this via mijnpgbpensioen.nl