One in four Dutch pension funds will not increase benefits in 2024

About one in four Dutch pension funds will not increase pension benefits next year, according to a report by NOS on Wednesday, citing the Pensioenfederatie. Last year saw significant increases in most pensions following years of stagnation.

The Pensioenfederatie, representing most Dutch pension funds, noted uncertainty over whether a third of these funds can implement indexing in 2024. Pension adjustments will vary from 0 to 8 percent, depending on the fund. While some funds will significantly increase pensions due to last year's inflation, others will adjust based on wage growth.

Four of the five largest funds will increase their pension benefits in 2024: ABP by 3.03 percent, Zorg&Welzijn by 4.80 percent, PME by 3.26 percent, PMT by 3.2 percent. bpf Bouw will not see an increase.

"Regardless of the choice to index based on wages or prices, each fund faces different circumstances. Therefore, each board makes its own considerations," explained to NOS Ger Jaarsma, chairman of the Pensioenfederatie.

The timing of inflation measurement can also affect pension fund increases. For example, funds measuring inflation from September to September might index at 0.2 percent, while those measuring from August to August could index at 3 percent. A fund's capacity to implement increases also depends on past adjustments and statutory regulation leeway.