What is the reason for new pension rules?

The Dutch pension system is one of the best in the world. Poverty among the elderly in this country is among the lowest in the world. This is because most employees in the Netherlands accrue pension through their work.

Both employers and employees pay for the pension. Employees receive this pension in addition to their state pension (AOW). Pension funds save and invest this money and thus allow the pensions to grow. Employees who retire will therefore receive a benefit that is much higher than the premium paid. That worked well for years.

So why does our pension system need a revamp?

  • We’re getting increasingly older
    That is good news, of course. It does mean the period during which we receive a pension is longer. To ensure that pensions remain affordable, the retirement age is also slowly increasing.

  • Security has become priceless
    Pension funds calculate how much money they should set aside now for today’s and tomorrow’s pensions. That money is meant to provide security for everyone. Because interest rates have been very low for years, pension funds have to set aside a lot of extra money. In addition, an additional security buffer must be maintained. That will change in the new system. In the new system, pensions will adapt more to the financial markets. The advantage of this is that pension funds don’t have to set aside so much money. It also means the pension is not fixed in advance. Just like now, you will gain insight into what your pension will look like in different scenarios: if things go well, as we expect it to be, and if things don’t go well.

  • The current pension rules are unclear
    It will become clearer what you and your employer contribute in premiums and what the extent of your personal pension assets is. It also becomes clearer that you pay for your own pension and not for the pensions of today’s retirees.

  • The labour market has changed
    Relative to the number of retirees, there are fewer and fewer people in work. More people also work as freelancers or have a flexible contract and they change employer and industry more often. The current pension system is not in line with these developments.

That’s the reason for new rules
Employers, employees and the government are working on this. Minister Schouten postponed the latest commencement date of the new pension scheme from 1 January 2027 to 1 January 2028. Pensioenfonds PGB is still aiming for a transition as of 1 January 2027.