Pension Funds in the Netherlands

7 Pages Posted: 17 Feb 2012 Last revised: 16 Nov 2015

See all articles by Angelien A. G. Z. Kemna

Angelien A. G. Z. Kemna

All Pensions Group

Eduard H.M. Ponds

Algemene Pensioen Groep (APG); Tilburg University - Department of Economics; Netspar; Tilburg University - Center for Economic Research (CentER)

Onno W. Steenbeek

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); APG All Pensions Group

Date Written: December 1, 2011

Abstract

The Dutch pension fund system, considered among the best in the world, successfully combines a first-pillar flat-rate pension for all residents with a labor-related second pillar and voluntary savings accounts as the third pillar. This paper describes the main institutional characteristics of the Dutch pension fund system and its evolution over the past few decades. The Dutch way is put in perspective by highlighting the differences between Dutch pension fund governance and that of the United Kingdom and United States, with an emphasis on the Dutch adherence to collective risk-sharing. Pension plan redesign, however, is inevitable because the increasing maturity of pension funds in a more volatile economy makes the defined benefit plan structure unsustainable. Pension funds will link benefits increasingly to financial market performance.

Keywords: Dutch pension fund system

JEL Classification: G10, G11, G23

Suggested Citation

Kemna, Angelien A. G. Z. and Ponds, Eduard H.M. and Steenbeek, Onno W., Pension Funds in the Netherlands (December 1, 2011). Journal of Investment Consulting, Vol. 12, No. 1, pp. 28-34, 2011. Available at SSRN: https://ssrn.com/abstract=2004629

Angelien A. G. Z. Kemna

All Pensions Group ( email )

Netherlands

Eduard H.M. Ponds

Algemene Pensioen Groep (APG) ( email )

P.O. Box 75283
Amsterdam, 1070 AG
Netherlands

Tilburg University - Department of Economics

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg University - Center for Economic Research (CentER) ( email )

Tilburg

Onno W. Steenbeek (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Dept. of Finance, H14-1
P.O. Box 1738
3000 DR Rotterdam, 3000DR
Netherlands
+31-10-4081400 (Phone)
+31-10-4089165 (Fax)

HOME PAGE: http://people.few.eur.nl/steenbeek/

APG All Pensions Group ( email )

Gustav Mahlerplein 3
P.O. Box 75283
1070 AG Amsterdam
Netherlands
+31-20-6049122 (Phone)
+31-20-4059176 (Fax)

HOME PAGE: http://www.apg.nl

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