In the second quarter of 2020, Dutch pension funds saw their financial position improve relative to the first quarter. As financial markets recovered somewhat from the declines caused by the COVID-19 crisis as seen in the first quarter, the pension funds’ assets went up EUR 106 billion to EUR 1,556 billion. Their liabilities increased EUR 56 billion to EUR 1,674 billion. With the growth in assets outstripping that in liabilities, their financial position improved.
The pension funds’ average funding ratio came to 92.9% as at 30 June 2020. This represents a 3.3 percentage point increase from 31 March 2020 (see Figure 1). 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 96.8% as at 30 June 2020. This represents a 2.9 percentage point decrease from 31 March 2020 (see Figure 1). The policy funding ratio is the average of the funding ratios for the past twelve months. It fell because the funding ratios in the second quarter of 2020 were lower than those in the corresponding quarter of 2019.At De Nederlandsche Bank, we independently compile statistics on the Dutch financial sector and economy. This article is based on these statistics. More information on our statistics and all dashboards can be found on our Statistics homepage.
We used the following statistics to compile this news release:
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