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Article | Accent op HR

Trendwatch – Pensions reforms in the Netherlands

January 20, 2025

At WTW, we closely monitor benefits trends. The new Dutch pension law will bring major changes, making it crucial to understand our clients' views and the future of the retirement market.
Retirement
dutch-pension-reform-for-employers

At WTW we keep a close eye on benefits trends. The new pension legislation will enforce significant changes to the Dutch pension landscape, therefore it is even more important to understand what our clients think and where the retirement market is heading.


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How are your pension plan investments performing compared to the market?!

  • 68% of those surveyed indicate that they have no insight in the performance of their pension investments.
  • This although less than half of the pension benefit depends on contributions, most of it on the return on investments.
  • 0.5% less return means 15% less pension outcome or 17.5% more premium for pension retention.
  • As for the DC plans, investment results are crucial. You as an employer have responsibility for this.

WTW can support you in gaining insight in costs and returns of your provider compared to the market.


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Grandfathering principles will present you several options

Are you considering to grandfather the age-related DC plan for current employees?

You also have the option to offer current employees a choice between the new flat rate contribution and increasing contribution rates. This means that you, as an employer, have an annual communication and information obligation towards your employees.

WTW can support you in gaining insight into costs, compensation costs and pension outcomes of all options.


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Market data flat rate

What is your future benefits strategy and how is your view on pensions distinguishing you from your peers

18%-22% is the preferred rate of many employers.

Graph showing what percentage level of flat rate is chosen by employers.
Market data flat rate

Graph showing what percentage level of flat rate is chosen by employers.


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Market data defined contribution

Do you grandfather the age-related DC plan?

Do you already know which option best suits to your policy regarding potential equal pay consequences, duty of care and impact on employee mobility?

Decision regarding grandfathering option varies per employer

This graph shows the percentage of employees that chooses a certain option for grandfathering.
Market data defined contribution

This graph shows the percentage of employers that chose a certain option for grandfathering.

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Robin Hardeveld Kleuver
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