Dutch pension sector funding ratio down, mainly due to indexation
In the fourth quarter of 2022, Dutch pension funds saw their funding ratios deteriorate relative to the third quarter, as the value of liabilities increased, while pension assets remained almost unchanged. Pension assets went down by €1 billion to €1,440 billion, while aggregate liabilities rose by €87 billion to €1,243 billion. The increase in the value of total liabilities can largely be ascribed to indexation.
Published: 31 January 2023
Average funding ratio of Dutch pension funds stood at 115.9%
The Dutch pension sector’s average funding ratio came to 115.9%. This represents an 8.8 percentage point decrease from the previous quarter (see Figure 1). It is nevertheless above the figure for a year ago, which was 114.3%. 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 120.2% as at 31 December 2022. This represents a 2.0 percentage point increase from 30 September 2022. The policy funding ratio is the average of the funding ratios for the past twelve months. It increased because the funding ratios in the fourth quarter of 2022 were higher than those in the corresponding quarter of 2021.
Source: DNB statistics
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.
Further information
We used the following statistics to compile this news release:
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