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FIAP > Destacados Boletines > The Netherlands announces pension reform based on individual funding and life-cycle funds

The Netherlands announces pension reform based on individual funding and life-cycle funds

7 July, 2020

An agreement has been reached between the government and social stakeholders for a reform of the private occupational pension system, which currently includes mainly defined benefit plans and collective funds. The reform will involve the introduction of personal pension accounts, defined contributions, life-cycle pension funds, an end to guaranteed pensions, which will now depend on investment returns, and a pension target of approximately 75% of the average salary after 40 years of service. In principle it would be mandatory for all plans, with certain exceptions. The terms of the agreement will be finalized in early July and will have to go through the legislative process.

Sources: https://www.ipe.com/news/dutch-cabinet-agrees-with-unions-on-dc-pensions-switch/10046205.article

https://www.ipe.com/news/dutch-dc-pension-switch-includes-lifecycles-personal-pension-pots/10046409.article

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