Minister Paul: “With the new system, Dutch people receive a pension that rises more easily, is more transparent, and suits workers who no longer stay with one employer for forty years. The transition is progressing well. Half of the pension participants have already switched and are now reaping the benefits of this new system. The sector is working hard to carefully transition the remaining pensions over the next two years. We therefore remain in close contact with pension funds, insurers, and supervisors.”

Structural Increases

The increases during the transition to the new system are structural. There is also more prospect of further increases in the coming years. In the new system, a larger portion of the paid premium and the achieved returns is available for the pension payout. Pension funds therefore expect that the annual chance of increases is much greater than the chance of a decrease.

Number of Funds That Have Switched

Currently, 30 pension funds/-circles have switched to the new system. Six more funds will follow in the next six months. At the end of this year, another 15 funds will switch. Sixty-one funds will switch in 2027, after which the last 25 funds will transition on January 1, 2028.

End Date Remains Unchanged

The minister concludes that there is currently no reason to postpone the final transition date. It remains set at January 1, 2028. This aligns with the advice of the government commissioner for pension transition, Prof. Dr. Fieke van der Lecq. However, concerns remain about pension schemes of small employers. Many of these schemes still need to be transferred. The minister emphasizes the importance of small employers taking action. The ministry is working with employer organizations to inform and support employers.

The total administrative costs for managing 10.7 million pensions rose by €220 million in 2024 to €1.4 billion. This is an increase of 17.7%. Partly, these are one-time costs due to preparations for the transition. The transition is also being used to invest in ICT systems. Costs are expected to decrease again after the transition is complete.