Dutch pensions sector urged to engage 'more actively’ in pensions debate

The Dutch pensions sector must engage more actively with the public debate following the introduction of the Future of Pensions Act (Wtp), according to APG pension economist, Anne Laning.

Laning, who regularly shares pension analysis on LinkedIn, described the sector’s current communication approach as a “missed opportunity”, pointing to the lack of engagement with participants.

“The sector does not engage enough in public debate. There is quite a lot of criticism to be heard and read, and a lot of misinformation is being shared," he argued.

"For years, we only sent out the Uniform Pension Statement once a year. However, the current situation calls for a different approach. Consider the participant as a customer who wants to be informed properly, thoroughly, and accurately.”

Laning suggested that funds should adopt more modern communication tools, such as apps that allow participants to access their pension information in real time, and a simpler narrative that avoids jargon.

“Develop an app where you can view your pension statement at any time. And create a serious storyline that avoids complicated terms. Don’t think and communicate in terms of instruments, but consider what you should really say,” he urged the industry.

Laning’s comments come amid ongoing debate around the implementation of the Wtp, with funds ramping up preparations for the transition and stakeholders calling for greater clarity and communication with members.

Acknowledging the complexity of the new system, Laning said that reforms such as the solidarity reserve and new risk-sharing mechanisms were designed with good intentions but had made products harder to explain.

“An individual defined contribution (DC) product is very easy to explain: you have this pot of money, which is invested, and those investments determine what you can buy with it.

"But we say that an individual DC product involves risks, which is why we are going to apply risk management. That makes it difficult for participants. It’s all done with the best of intentions, but it doesn’t make it any easier to understand,” he said.

With this in mind, he argued that the sector should not shy away from difficult messages.

“When a publicly traded company presents its annual figures, you see a proud CEO who radiates confidence. But which pension fund manager proudly talks about the annual figures?

"In the new system, there is no coverage ratio. If the return is positive but interest rates have fallen, benefits may still go down. We need to practice how we are going to tell that story,” he said.

Looking ahead, he said he hoped to see conversations move away from criticism and towards personal engagement with outcomes.

“I would like to see people start comparing their personal pension assets and expected benefits," Laning concluded.



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