The new pension law has been approved by politicians in The Hague since July 1, 2023. This means that the pension system in the Netherlands will change. How exactly? That depends on the agreements that unions and employers make. But the frameworks within which these concrete regulations will soon fall are known - and we will explain them in this article.
Old system unsustainable
The call for a new pension system had been there for years. The current system no longer works because we are getting older on average and interest rates have been low in recent years. As a result, saving for pension became increasingly expensive. Moreover, the current pension landscape is tailored to people who work for the same employer or in the same industry for their entire career - and therefore build up a pension with the same fund. Now that we change employers more often or start our own business, our pension must change along with it.
Everyone has their own pension capital
Pension funds currently still work with average salary schemes. This means that you can count on a fixed pension benefit from a certain age. In the new system, all pension schemes will be based on premium contributions instead of fixed pensions, meaning that your pension will move with developments in the financial markets. Is the economy doing well? Then pensions can be increased more quickly. In the same way, your pension may be lower if you have poor results – although there are various options to compensate for setbacks. The new system should make pensions more personal and transparent.
Follow details
The new pension law came into effect on July 1, 2023. There will then be a transition period until January 1, 2028: before that date, all pension schemes must comply with the new rules. In concrete terms, this means that unions and employers will negotiate about the new pension scheme. In this way, they further flesh out the legal framework together.
What is happening with accrued pensions?
That is an important point of the new system: it is clear how we will accrue pension from January 1, 2028 at the latest, but what will happen to all pensions accrued before then? Social partners and pension funds can choose to 'enter' these pensions. In this way, they transfer to the new system and the old and new pension accrual remain together, which has major advantages.
Are you building up pension with an insurance company? In that case too, the premium contribution will be the starting point. However, an accrued guarantee pension will not be entered into the new pension system.
View your Uniform Pension Overview or mijnpensioenoverzicht.nl to see where you are building up your pension. If necessary, inquire with your employer, pension fund or pension insurance company.
Consequences for your pension
So a lot is known about the new pension system, now that the law has been approved by the House of Representatives and the Senate. But many details still remain unclear. It is therefore not yet possible to say what the consequences of the new system will be for your pension - that depends entirely on the additional agreements, which in many cases still have to be made. It is clear that the changes affect all pensions: those that are still being accrued, but also those that have already commenced. There is no guarantee that you will improve with the new system, but also no guarantee that your pension will be worse off. Within the legal framework, funds have resources to limit or compensate for adverse consequences of the switch, such as a solidarity reserve.
More information
Do you have questions about the new pension system? Feel free to contact us. Our Service Center can be reached every working day from 8.30:17.00 am to XNUMX:XNUMX pm via sc@unie.nl and 0345 851 963.
