FAQ new pension system

The Dutch pension system is generally well organised. Nevertheless, in recent years improvements have been needed in order to make the pension system ‘future proof’. For example, under the current rules pensions are not allowed to increase in line with inflation when the economy does well. What's more, we're facing the fact that the Dutch population is ageing and life expectancy is rising, which is pushing the cost of the current pension system up.

The Dutch pension system is based on the concept of collectivity, and that is not going to change. It means employers and employees jointly set aside money for pensions, and when the economy isn’t doing well, the consequences are carried together. Everyone in the Netherlands receives a pension for the rest of their life and Dutch state pension (AOW) will continue to exist.

Pensions are going to follow trends in the economy. This means our pensions may rise or fall every year. Pension benefits for pensioners, however, will fluctuate as little as possible.

The employer and the trade unions (together the social partners) will need to opt for one of the two types of pension plans: the new solidarity pension contract (also referred to as the solidarity contribution plan) or the more flexible individual pension contract (also referred to as the flexible contribution plan). The social partners will also need to decide whether or not the new pension rules will apply to already existing pension rights. This is referred to as conversion.

The pension fund will assess whether the decisions made by the social partners are well-balanced, suitable for administration and justifiable.

Your employer and the trade unions are currently negotiating the details of your new pension scheme. These agreements will be finalized no later than July 1, 2025. Rest assured, we will keep you informed of any developments until that time. After July 1, 2025, our pension fund will proceed to formalize the agreements into a new pension regulation. This process will be completed no later than January 1, 2028. Your new pension scheme will officially commence on January 1, 2028. At present, there is an expectation that the implementation of your new pension scheme may occur earlier, though this is not yet confirmed.