How To Close the Funding Gap in Dutch Pension Plans? Impact on Generations

IB#10-7

The brief’s key findings are:

  • The financial crisis stressed the Dutch pension system, as assets dropped below the required 105 percent of liabilities.
  • Automatic indexation adjustments, introduced in recent years, may not be sufficient to restore solvency.
  • Policymakers now have to consider more substantial measures, which affect retirees and workers differently.
  • This process highlights the need to more effectively distribute risk across generations within the pension system.