Dutch pension funds have experienced the largest decline in public confidence in their ability to meet their obligations over the past year, according to a new survey by De Nederlandsche Bank (DNB).

The Dutch regulator’s survey of 2,400 Dutch households found that just over half (51 per cent) of respondents are confident that pension funds can meet their commitments to pensioners, compared to 57 per cent in 2024.

However, a higher number of respondents have confidence in their own pension fund's (57 per cent) ability to pay pensions.

Trust in the pension sector is much lower and has experienced a larger fall than in other financial sectors.

For example, 66 per cent of respondents are confident that banks will be able to repay the money entrusted to them at all times, down from 71 per cent in 2024.

For insurers, confidence in their ability to meet their contractual obligations to policyholders stands at 60 per cent, down from 63 per cent the previous year.

DNB described the decline in public confidence of all three sectors as “striking”, as “no concrete changes have taken place”.

However, the Dutch pension sector is undergoing significant reform with schemes transitioning to a new type of pension system.

On a more positive note, DNB found that confidence in financial institutions has remained stable over the past year.

Fifty-two per cent of households surveyed by DNB indicated that they have fairly high or very high confidence in financial institutions. The rest had little or no confidence.

DNB said the results the overall confidence in the financial sector remains stable.

“This shows that financial health is not the main reason why people trust financial institutions. Respondents mainly cite their own experiences, supervision of the sector and a general feeling as the basis for their confidence,” it stated.

On the other hand, trust in public institutions has declined. Trust in national politics has fallen to 18 per cent, and trust in the civil service to 36 per cent. Trust in DNB also fell slightly, but a majority still has confidence (70 per cent).

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