Pension funds are suspending the changeover to the brand new system

• Roland Muller

  Financial Reporter

The variety of pension funds that may switch to the brand new pension system on 1 January 2025 has dropped considerably. That is evident from a research by De Nederlandsche Financial institution (DNB) and the Netherlands Authority for Monetary Markets (AFM), which asks pension funds each quarter about their progress when it comes to shifting to the brand new pension system.

Of the 177 pension funds, solely three plan to vary programs early subsequent 12 months. One other 4 funds wish to make the step earlier than the center of 2025. Six months in the past, 25 pension funds have been nonetheless aiming to begin the brand new system in 2025.

The vast majority of pension funds, 74, are actually concentrating on 2026 for the conversion. The variety of funds that don’t wish to merge till 2027 has greater than doubled in comparison with six months in the past: from 21 to 44. The change should be made no later than January 1, 2028. 5 funds have now give attention to this.

This is what’s going to change along with your pension:

Though the second to change to the brand new system is being pushed again, DNB and AFM don’t count on {that a} postponement will even result in a change.

The variety of funds that use the pension switch to shut as an impartial fund stays at 20 p.c. This primarily considerations firm pension funds for (former) staff of a specific firm who depart. They then merge with different funds or not settle for new companions, inflicting the fund to develop slowly.

The political turmoil over the pension legislation previously six months might have performed an element within the determination to show later. For instance, NSC wished a participant referendum of every pension fund during which the contributors would assist decide whether or not they need to change or not. There may be nothing else to be discovered about this within the coalition settlement.

As well as, the transition to the brand new system is a serious enterprise. There are round 1,500 billion euros within the pension pots of all Dutch funds. This should be break up between private pension pots. This requires complicated administrative intervention, there isn’t any cash to make errors.

Additionally it is taken significantly whether or not the cash is distributed pretty among the many totally different generations throughout the fund. This requires an intensive technique of session with the social companions and evaluation by the DNB and AFM.