The average Dutch future defined contribution pension benefits increased by 7 per cent, according to the latest analysis from Aon.
According to Aon’s latest analysis a 40-year-old employee with a median income saw their future pension benefit in the scheme increase from €937 to €1,003 per month.
Around one in seven employees in the Netherlands now have a defined contribution scheme, with the figure set to increase with the conversion to the new pension system. Aon said that fluctuations in the future benefit will be common going forward, however, damping mechanisms have been designed to dampen the fluctuations.
The rise in the first half has been attributed to interest rates rises, which have climbed by as many as 37 basis points, and shares rose by more than 6 per cent. However, Aon warned that interest rates are now falling, and, as a result, will affect the price of purchasing a pension.
Aon CEO, Frank Driseen, said: “We will have to get used to a pension benefit that can always change. Pensions may be able to be increased faster and more, but on the other hand, they will also be reduced more often. This must be given proper attention in the communication."
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