The Dutch pension fund ABP reported that its funding ratio reached its highest level in 18 years in the second quarter (Q2) of 2026, rising from 119.1 per cent at the end of the first quarter (Q1) to 126.9 per cent.

The fund’s interim results showed that ABP's overall financial position improved significantly in Q2, with its investment return of 7.2 per cent and assets growing by €37.9bn to €568bn.

Commenting on the results, PME chairman of the board, Harmen van Wijnen, acknowledged that the situation in the Middle East “remains turbulent”, but said that “thanks to a temporary truce between the US and Iran, the financial losses from the previous quarter were more than offset”.

“ABP’s investment portfolio is designed to protect pension assets as effectively as possible. Even in a turbulent world. We carefully weigh up the balance between return and risk. The return must be high enough to ensure a good pension,” Van Wijnen continued.

“At the same time, we limit risks so that we can continue to pay pensions even when the financial markets are facing headwinds. That is why we invest across many countries and in various types of assets. And we invest for the long term. This makes us more resilient to fluctuations.”

The update also reported that in January this year, ABP increased pensions by 2.84 per cent, enabling the fund to fully offset the 2.84 per cent cost-of-living increase from 1 September 2024 to 1 September 2025.

The fund also said that over the past four years, it was able to increase pensions in full almost every year. ABP explained that this was possible because it could take advantage of more flexible government rules. The flexible use of these rules is permitted because the fund intends to transition to the new Dutch pension scheme on 1 January 2027.

Upon switching to the new Dutch pension scheme, ABP will distribute its total pension assets.

The fund will calculate exactly how much each pension is worth, calculate how much money will go into the collective buffer and how much it can distribute, depending primarily on the funding ratio as at 31 December 2026.

The higher the funding ratio, the more ABP can distribute, but the lower the funding ratio, the less it can distribute.

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