Dutch Decline of Pension Assets Set to Continue for Foreseeable Future
29 October 2012 (PLANSPONSOREurope.com) – Dutch pension asset growth is set to decline for the “foreseeable” future, according to actuaries’ research.
Data from the Dutch pensions regulator DNB reveals the rate of increase has more than halved to 32% since 1991.
And between 2001 and 2011 this figure dropped to just 29% - a figure Evert van Ling Managing Director and Partner Dutch actuary LCP believes will drop further in the next decade.
Van Ling attributes reduction in growth rates to almost all pension schemes changing arrangements from final salary to career average schemes, as well as disappointing investment results during the last 15 years.
“Companies are trying to limit their pension liabilities and risks and a lot of pension schemes are transferred from DB into DC,” he added.
“As the trend of aging continues, a bigger part of the assets belongs to pensioners and therefore growing pension payments could lead to a decrease in assets.”
According to van Ling less generous payments to younger workers will also take its toll.
“Elder generations have accrued relative high pension benefits, but for the younger generations the pension schemes are less generous;” he said.