Pension payouts could rise 10% next year as funds adopt new system
Dutch pension fund participants could see payments next year that are 10 percent higher than expected with the introduction of the new pension system at the start of the New Year, according to AD. Pensions will be allowed to carry lower levels of financial reserves and assets starting in Jan. 1, and those switching to the new system will be able to reduce their reserves in a one-time measure to boost payouts.
Pensions amounts will still be adjusted annually, but the new rules means a greater possibility of both increases and reduced payouts, depending on investment performance, the newspaper noted. It means while older participants have a better chance at short-term increases, younger participants have a higher risk of decreases later on.
Three dozen pension funds will take the leap and transition to the new system at the start of 2026. Healthcare sector pension fund PFZW, the country’s second-largest pension fund, will likely boost payouts significantly next year, according to AD.
PFZW has some 253 billion euros in invested assets, with three million people participating in the pension. Funding ratios swelled to 124 percent in November, and interest rates appeared favorable in December, according to AD. That means the prospect of liquidating portions of its portfolios to pay higher disbursements.
PFZW may be able to increase pensions by anywhere from 12 to 14 percent. The fund was quoted by AD as saying a “one-off” increase was possible depending on investment performance in December, but would not comment more substantively than that.
BpfBouw, the large pension funds for the construction sector, has seen its funding ratio surge by 1.4 percentage points. At the start of the quarter it was estimated the could increase payouts next year by almost 20 percent, but that could even be higher than expected with a funding ratio nearing 132 percent at the end of November.
Those in funds that are not transitioning to the new system may not see similar benefits this year. All funds must make the switch by 2028.
PGB will only pay its pensioners an increase of 1.7 percent despite a funding ratio of 122.6 percent. ABP participants will receive a 2.84 percent increase.
PZFW will announce its final plans for the year towards the end of January, with increases possible from the end of March. Participants will be eager to know what the situation is, especially as the level of disbursements was largely unchanged in 2025 compared to a year earlier.
