Pension sector funding ratio improves in third quarter

Total investments went up by €22 billion to €1,625 billion, while aggregate liabilities went down by €23 billion to €1,287 billion. Investments increased partly due to the positive trend in share prices. In addition, liabilities decreased due to a further rise in long-term interest rates. Together, this creates a double upward effect on the funding ratio. The funding ratio reflects a pension fund’s current financial position, expressing the ratio between investments and liabilities.

Average funding ratio of Dutch pension funds at 126.3%

The Dutch pension sector’s average funding ratio came to 126.3%. This represents a 3.8 percentage point increase from the previous quarter (see Figure 1) and also puts it above the figure for a year ago, which was 118.3%.

Policy funding ratio at 119.8%

This represents a 1.7 percentage point increase from the previous quarter, when it stood at 118.1%. The policy funding ratio is the average of the funding ratios for the past twelve months.

Further information 

This news item has been compiled excluding converted pension funds; no adjustment has been applied to previous quarters.

We used the following statistics to compile this news item:

• Financial position of pension funds (Month)
• Financial position of pension funds (Quarter)