The Dutch pension system has a reputation for being one of the best in the world; however the Dutch express a bleak outlook on their retirement future, echoed by Global Retirement Reality Report data. So what is going wrong?
In this snapshot, we examine the unease, distrust and lack of awareness that prevails as the Netherlands transitions away from an unsustainable defined-benefit (DB) construct, amid prolonged public debate, and towards a model that borrows heavily from defined-contribution (DC) plans.
The Dutch have a low level of pension awareness
Dutch people don’t have a strong sense of responsibility regarding their pension provision, nor do they have much knowledge of the plan particulars, as reflected by survey respondents’ not knowing how much they had saved to-date, the level of contributions they make versus their employer, or what investment or drawdown choices are available to them.