Netherlands Pension Risk

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A critical issue for Dutch companies

Dutch companies typically have larger obligations than their competitors from other countries.  Companies in the Amsterdam based AEX 25 had 38 cents of obligations for every euro of share price, higher than their peers listed in other European countries.   These differences upset the competitive balance in an industry if pensions is not given the appropriate level of attention within the company.  The new 'pensioen akkoord' between Dutch employer and employee associations, due to be released in the coming weeks,  could prove the right moment for companies to tackle their pension position.
This short document discusses the research behind this finding and provides suggestions about what companies should do.