Dutch households suffered large losses on investment funds in the first three quarters of 2022, DNB figures show. Falling stock market prices and rising interest rates reduced the size of investments in funds by €18.3 billion (-15.9%) to €97.3 billion in the first nine months of this year.Read more
Dutch pension funds’ average funding ratio improved
In the second quarter of 2022, Dutch pension funds saw their average funding ratio improve relative to the first quarter, as the value of their liabilities showed a steeper decline than their assets. Pension assets went down by €190 billion to €1,517 billion, while aggregate liabilities fell by €198 billion to €1,239 billion.
Average funding ratio of Dutch pension funds stood at 122.4%
The Dutch pension sector’s average funding ratio came to 122.4%. This represents a 3.6 percentage point increase from the previous quarter (see Figure 1). It is now well above the figure for a year ago, which was 109.4%. The funding ratio reflects a pension fund’s current financial position, expressing the ratio between available assets and liabilities.
The policy funding rate came to 114.7%. This represents a 3.7 percentage point increase from the previous quarter. The policy funding ratio is the average of the funding ratios for the past twelve months. It increased because the funding ratios in the second quarter of 2022 were higher than those in the corresponding quarter of 2021.