Dutch pension funds ABP, PFZW and PME have published their end of year results for 2025, all revealing increased funding ratios compared to the start of last year, but all experiencing negative investment returns, in what has been described as an "unusual year".

ABP said its coverage ratio “rose significantly” over the 12 months, ending at 123.5 per cent, up from 111.9 per cent at the end of December 2024, which it attributed to increased interest rates.

In terms of investments, however, ABP made a negative return of -1.6 per cent, citing turmoil in the financial markets, trade tariffs and wars in Europe and beyond.

Despite the negative returns, ABP’s liabilities decreased, placing the pension fund in a better financial position at the end of 2025 than at the start, allowing it to increase pensions by 2.84 per cent.

ABP chair, Harmen van Wijnen, said: “For ABP, it was a year of two sides to the same coin: Investments achieved a negative result for the whole of 2025, mainly due to rising interest rates and a falling US dollar. On the other hand, it was precisely these higher interest rates that increased the funding ratio each quarter to 123.5 per cent at the end of 2025.

“It was a turbulent year on the financial markets. As long-term investors, we keep a cool head in turbulent times and invest in a diversified portfolio across the globe in various types of investments. In this way, we ensure the most purchasing power and stable pension possible for our participants.”

For PFZW, the pension fund experienced a negative return of -3.9 per cent, with total invested capital falling from €259.1bn to €251.4bn in 2025.

However, it also saw its funding ratio rise from 109.8 per cent on 1 January 2025 to 125.7 per cent on 31 December 2025. Its policy funding ratio, the average of the funding ratio over the past 12 months, also increased from 108.9 per cent to 177.7 per cent during the same period.

Commenting, PFZW chair of the board, Joanne Kellermann, noted that the pension fund has now transitioned to the new pension system.

“We now have a pension that is more future-proof, can grow more easily in good times and is still well protected in bad times,” she stated.

In addition, PME pension described 2025 as an “unusual year” as it also experienced a -3 per cent loss on its investments whilst its funding ratio rose from 113.1 per cent to 125.3 per cent over the year.

The pension fund experienced a fall in its assets in the fourth quarter to approximately €59.5bn, but so too did its liabilities, which fell to €47.4bn during the same period.

PME chair of the executive board, Alae Laghrich, said: “It has been an exceptional year in many respects. A handsome return of over 9 per cent on the return portfolio was offset by a negative return on our matching portfolio as a result of higher interest rates. On balance, this resulted in a negative return for the entire investment portfolio. On the other hand, our liabilities decreased.

“On an annual basis, this ultimately resulted in a huge leap forward in the funding ratio… This enabled PME to increase pensions in line with price inflation on 1 January 2026.”

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