Towards the new pension system

Pension funds transitioning to the new system must comply with the new rules by 1 January 2028 at the latest. By 1 July 2026, a total of 38 pension funds and four ring-fenced funds had done so.   It is expected that well over 100 funds will convert to the new system in the coming period.

Difference between the old and new systems

Two key differences from the old system are that there is no longer any guarantee regarding the amount of the pension benefits, and that pensions are no longer paid from a collective fund. Under the new system, employees instead accrue pension entitlements through a defined-contribution scheme. The contributions paid in are invested and form an individual pension account

Employees can see their contributions to the scheme and how their pension account develops. If the economy is doing well, pensions may go up. If the economy is doing poorly, pensions may go down. Employers and employees may decide to set aside funds to absorb underperforming investments. This allows pension funds to limit fluctuations in the value of pensions.

Reduced risk for older scheme members

Younger members’ pension accounts have more time to recover from market setbacks than those of older members. This is why the new system allows for riskier investments for younger members in the hope of achieving a higher return. As members age, the investment policy usually becomes more conservative. Members’ risk appetite is a key factor in setting the investment policy.

More information about your pension

You can find everything you need to know about the new system at pensioenduidelijkheid.nl.

Your employer and your pension provider must provide you with information about your pension scheme. If you want to check your personal pension account, log in to mijnpensioenoverzicht.nl.  Please note that your pension entitlement is not fixed. This is an estimate, and does not provide any guarantee.

What is DNB’s role?

In our supervision of pension funds, we look at the following:

• Financial position
  Do pension funds comply with the statutory financial rules and regulations – for example with respect to investments and contributions, and when increasing or decreasing pension entitlements and benefits?

• Operational management
  Do pension funds have their bookkeeping and accounting systems in order? Have pension fund properly identified the risks involved in administering a pension scheme, and are there policies in place to manage these risks?

• Board members
  Are a pension fund's board members suitable for their job, and is their integrity beyond doubt? They may only join the board following approval by DNB.

DNB also assesses the conversion to the new system

When converting to the new system, pension funds must transfer the collectively accrued pension capital to individual pension accounts.   It is crucial that calculations, data quality and IT systems are robust so that all pension entitlements are correctly converted to the new system. When a pension fund is ready to convert, DNB assesses whether the conversion will take place in a ‘transparent, controlled and careful’ manner and whether all members can feel that they are represented in a balanced way.

What does this mean?  

Clear rules are in place to ensure that members’ interests are properly balanced. Pension funds must carefully assess the financial implications and use these figures when making their decisions. There are also rules governing the 'transition instruments’ that they use when distributing the accrued capital. These instruments include the calculation method, how any buffer is to be funded, and what compensation members will receive for the abolition of the ‘one-size-fits-all’ system (under which every euro contributed results in the same pension accrual for all pension scheme members, regardless of their age).

In addition, DNB oversees the smooth conversion to the new system. Funds must identify and manage risks, such as errors in data or problems with IT systems, in a timely manner. Finally, DNB checks whether the decision-making process within the fund was conducted with due care.

Statement of views on conversion plan

The pension fund must make a conversion plan available to its members on its website. The members must then be given an opportunity to submit a statement of views about the intended conversion before DNB takes a decision. DNB collects and considers the statements of views in its decision. Submitting a statement of views is subject to certain conditions. The conditions for submitting a statement of views on a conversion plan are described on DNB’s website (in Dutch).

Statement of views on bridging plan

If a pension fund wishes to use transition instruments for increasing and decreasing pensions, it must submit an annual bridging plan to DNB for each year of the transitional period, setting out the fund’s financial situation until the moment of conversion. Funds that intend to convert to the new system on 1 January 2028 must submit a bridging plan by 1 April 2027 at the latest. Members can also submit a statement of views on a pension fund’s bridging plan under certain conditions. Information on submitting a statement of views can be found here (in Dutch).

Once a pension fund has converted to the new system, DNB continues to supervise whether its bookkeeping and accounting systems are in order.

The three pillars of both the old and the new pension systems

1. General Old Age Pension (AOW)

The first pillar is the state pension under the General Old Age Pensions Act (AOW). Every individual living or working in the Netherlands automatically builds up AOW under this state pension scheme. Every year, the government adjusts the amount of AOW benefits in line with the development of the minimum wage.
The AOW retirement age is connected to the life expectancy of Dutch pensioners. For everyone born after February 1957, it has been set at 67 or over. Life expectancy is likely to rise further, which means the AOW retirement age will also rise. Changes to the AOW retirement age are announced five years in advance. In 2028, for example, the statutory retirement age will be raised to 67 years and three months. 

2. Workplace pension

Most workers also build up a supplementary pension through their employer. Both the employer and the employee contribute to this pension, which is usually administered by a pension fund. The pension fund invests the contributions received from employers and employees in, for example, securities or real estate. The pension capital may grow so that benefits can be paid out later. Under the new pension system, the contributions paid in will be more clearly linked to the individual pension scheme member. Employees accrue pension entitlements through a defined-contribution scheme, and that money is then invested. Furthermore, a workplace pension remains a lifelong benefit, as the longevity risk is shared among members.

3. Voluntary supplementary pension

Some people also build up an individual supplementary pension in addition to their AOW pension and – if applicable – their workplace pension. They can do so through life insurance or a bank saving scheme. This is a key pillar for self-employed persons and other entrepreneurs, since they do not build up a workplace pension through an employer.