The Netherlands: Pensions in the Netherlands - from defined benefit to defined contribution

This chapter gives an overview of the developments regarding pensions in the Netherlands. It focuses on supplementary pensions, although the statutory social security pension in the first pillar is also briefly mentioned: this chapter looks both back and to the future. The sustainability of the pension system in the Netherlands is a major point of discussion in this chapter. Low market interest rates affect the financial sustainability of the capital covered by defined benefit schemes. The Dutch government has made a proposal for the Future of Pensions Act. This proposal endeavours to have all pension schemes adjust to the Future of Pension Act requirements no later than 1 January 2026 and then become defined contribution schemes. This proposal has raised much discussion