Pension 2025

Scenarios for the pension sector's future

In 2016 the Cabinet of the Netherlands set out on a course to revise the pension system. Whether the new Cabinet will follow the same course or head for a different direction cannot be foreseen as of the writing of this report. The discussions regarding pensions are ongoing and political positions are divided.

The future of the pension system depends on more than just the legal framework. The extent of flexibility within the legal framework will be highly dependent on economic conditions, changes in supply and demand, as well as the choices of the social partners and participants in pension plans.

Organisations are confronted with more opportunities and challenges when the economy flourishes and interest rates are high than when compared to a stagnating economy with low interest rates. It remains to be seen whether the trend of increasing use of individual pension plans continues, or if collective arrangements will remain dominant. In any scenario there will be room for strategic choices, a differentiated market approach and innovations. An organisation will need to consider what opportunities may arise and what choices it will need to make to be ready to react to new situations.