Pension overhaul could raise some payouts in 2026, experts warn of risks
Millions of Dutch workers and retirees will see their pensions shift to a new system next year, with some funds signaling increases, but experts warn payouts could also fall depending on investment performance, NU.nl reported.
Under the new system, pensions are held in individual accounts. Younger participants’ funds are invested more aggressively, while older participants’ accounts are managed conservatively. Adjustments now occur annually, reflecting investment performance. The reform aims to make pensions tied to real-time investment results, but payouts will depend on economic conditions, meaning retirees could see either gains or losses.
The 2023 pension overhaul links payouts more closely to economic returns and individual contributions. Funds have until early 2027 to transition. Large funds, including PMT, bpfBOUW, and PFZW (healthcare workers), will switch in early 2026, with PFZW indicating participants may receive a significant boost.
The possible increases stem from smaller required reserves under the new system, which frees extra money for distribution. Funds that have not yet switched, like the civil servants’ ABP, may see limited increases this year, depending on their financial health measured by the coverage ratio.
“In the new system, the chance for increases is higher, but decreases are also possible,” Theo Nijman, pension specialist at Tilburg University, told NU.nl. Rabobank economist Leontine Treur added that younger workers will see more volatility, while older workers face steadier growth. Both stressed the system provides clearer insight into individual contributions.
