Historic turn in pension country funds to new system

The Pension Federation, which manages the interests on behalf of approximately 250 pension funds, says to look for a system with a personal piggy bank for everyone. In such a completely new system saves everyone for themselves, instead of the current Dutch system with a benefit promise, says director Gerard Belts Pension Federation in talks with the FD.

The pension funds have a difficult year behind us and this year it is again tough. The coverage is often too low and the demand be higher. Not surprising that support for the current pension plunges.

Caution trump
That is based on payment promise funds know exactly how many euros they need to pay pensions over the coming decades, and that requires a lot of caution. But this entirely new pension system is based on private investment: So what you make put in. Some economists, such as Lans Bovenberg, pleading for some time for such a personal pension pot.

However, the judgments are striking because the pension funds the same sounds consistently for years ignored. According Belts is the idea at the funds 'ripe' recently at the grassroots. According to him forcing the protracted situation with low interest them this choice.

An unstoppable trend, also thinks Theo Kocken, Professor of Risk Management for Institutional Investors at the Free University. "This is irreversible You should invest in a system in its own right, but collectively No weird make more calculations indicating that the moving in that direction:... A very big step."

'Better late than never'
For other cirtici took this decision but long. "Very good that they see the reality start to the Pension Federation. A decade too late, but better late than never," commented Martin Pikaart for years critic and author of The Retirement Myth. "We must start again, but the legislature does not count yet, already working hard on that."

Kocken also thinks that a new system yet equally overdue. Kocken: 'But that's not this government's term, but must nonetheless take shape within a few years. "

According Pikaart run funds all times overtaken by events, since the idea for such a new personal system in practice prevents long. As an example he gives PPI: a pension provider which may be created by anyone, but one which bears no risks.

Precisely here is the rub. The Pension Federation is researching a system where the individual saves a game for his own retirement, but remains committed to sharing risks. Pikaart ". Belts continues to call for risk sharing but then you keep using contributions from new people to cover gaps we have to start again:. With a new contract and a new setting."