It has been coming for years, now it is almost there: the new pension system has been approved by politicians in The Hague. This means that the pension prospects of many people in the Netherlands are changing. How exactly? That depends on the agreements made by unions and employers. 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 falling for decades. As a result, saving for retirement became increasingly expensive. Moreover: the current pension landscape is geared towards people who work for the same employer or in the same sector throughout their career – and therefore accrue pension with the same fund. Now that we change employers more often and start our own business, our pension must change with it.
Everyone has their own pension capital
Currently, pension funds still work with career average schemes. This means that from a certain age you can count on a fixed pension benefit. In the new system, all pension schemes will be based on contributions instead of fixed pensions, making your pension more dependent on interest and returns. Is the economy doing well? Then the pensions can be increased more quickly. In the same way, your pension can be lower in the event of 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 system officially came into effect on 1 July. There will then be a transition period until 1 January 2028: before that date, all pension schemes must comply with the new rules. In concrete terms, this means that unions and employers will negotiate new pension agreements. In this way, they jointly fill in the legal framework.
What is happening with accrued pensions?
That is an important point of the new system: it is clear how we accrue pension from 1 January 2028 at the latest, but what happens to all the capital accrued before that time and under other agreements? Social partners and funds can choose to 'sail' these pensions. For example, they will switch to the new system and old and new pension accrual will 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 accrue your pension. If necessary, inquire with your employer or your insurance company.
Impact on you
So much is known about the new pension system, now that the law has been approved by the House of Representatives and the Senate. However, many details remain unclear. That is why it is not yet possible to say what the consequences of the new system will be on your pension - that depends entirely on the additional agreements, which in many cases still have to be made. There is no guarantee whatsoever that you will improve with the new system, but also not that your pension will be worse. Within the legal framework, funds have resources to limit or compensate for the 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 en 0345 851 963.
