Around 11 million participants are expected to switch to the new Dutch pension system by January 2026, according to a summer progress report released by the Dutch Central Government.

It revealed that 235,000 participants have already switched, divided among five pension funds, several insurers, and premium pension institutions (PPIs).

The new system, which officially came into effect on 1 July 2023, allows funds to adjust investments based on age, helping increase pensions.

For older individuals, investments are made cautiously to protect savings, while for younger individuals, investments are riskier but offer higher potential returns over time.

As a result, pension funds can operate with a smaller buffer, part of which is divided among participants.

However, in February, several Dutch pension funds voiced concerns about amendments to the Wtp, proposed by the political parties New Social Contract (NSC) and the Farmer-Citizen Movement (BBB).

In a "critical response," funds including PFZW, ABP, Bouw, PME, and PMT warned that the amendments could undermine the pension system and lead to €18bn in additional costs.

Subsequently, the House of Representatives rejected the amendment, which would have allowed participants to choose whether their current pensions could be transferred to the new pension schemes.

Despite the eventual rejection of the amendment, the impact of these concerns is still being seen, having prompted broader concerns over widespread delays in the shift to the new system, with two Dutch pension funds announcing they were postponing their planned transition last month.

However, the summer progress report confirmed that on January 1 2026, 36 funds will transition to the new system, followed by 15 funds on July 1 2026.

Meanwhile, the most significant number of funds – 51 – expect to switch on 1 January 2027.

On 1 July 2027, 12 more funds will follow, and on 1 January 2028, the final 17 will switch.

Overall, approximately 95 per cent of all pension participants are expected to switch over the next year and a half, according to Dutch Minister of Social Affairs and Employment, Eddy van Hijum.

However, 270,000 participants, divided among 32 pension funds, will not switch to the new system.

Furthermore, another 13 funds have postponed their entry date, and most schemes with an insurer or PPI will not be converted until 2026 or 2027.

The government commissioner for the transition of pensions, Prof. Dr. Fieke van der Lecq, signalled that this could cause problems and advised spreading out the conversion of insured schemes.

Van Hijum will, therefore, enter discussions with insurers, social partners and advisors to make concrete agreements on a coordinated approach.

The law currently states that all pension providers must have transitioned by 1 January 2027.

Despite further delays, the government commissioner indicated that she sees “no reason” to postpone the final transition date beyond January 1 2028.

She warned that postponement was not free, as it entails “financial risks.”

Meanwhile, Van Hijum stressed that the transition was about "the livelihood of millions of pensioners and future pensioners."

We have to make the transition to the new system very carefully, and that is why we are taking until 2028 to do so," he continued.

"Over the past fifteen years, pensions have increased at a rate that has hardly kept pace with prices, and young people have wondered whether there will be anything left for them in the future. This uncertainty has caused widespread dissatisfaction.

"Now that more and more funds are switching to the new rules, it is very important that people are well informed and involved. And that people really start to notice the benefits of the new system," he added.

"We see in the SZW report that we are firmly on the right track as a sector, said Pension Federation chairman, Ger Jaarsma.

"We are making progress towards the new pension system, and that is going well. The large numbers are coming: millions of workers and pensioners are switching over in the coming period.

"That shows how great the joint effort is that funds, administrators and supervisors are making."

"We already share the 'lessons learned' with many funds, and there is room for every fund that transfers. That way, we make it a success together, for all pensioners and workers, young and old," he concluded.

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