Financial position of Dutch pension funds improved in second quarter of 2021
In the second quarter of 2021, Dutch pension funds saw their financial position improve for the fifth consecutive quarter, as growth in their aggregate pension assets outstripped the increase in liabilities. Pension assets went up by €60 billion to €1,736 billion, while aggregate liabilities climbed €10 billion to €1,586 billion.
Average funding ratio of Dutch pension funds stood at 109.4%
The Dutch pension sector’s average funding ratio came to 109.4% as at 30 June 2021. This represents a 3.0 percentage point increase from 31 March 2021 (see Figure 1). It is now well above the figure for a year ago, which is 92.9%. The funding ratio reflects a pension fund’s current financial position, expressing the ratio between available assets and liabilities.
The policy funding ratio came to 101.1% as at 30 June 2021. This represents a 4.1 percentage point increase from 31 March 2021. The policy funding ratio is the average of the funding ratios for the past twelve months. It increased because the funding ratio in the second quarter of 2021 was higher than that in the corresponding quarter of 2020.
Figure 1: Funding ratio and policy funding ratio of Dutch pension funds