Sunday 31 May 2020

Dutch pension system is one of the best, but could do better

Pensioners on bikesThe Dutch pension system is one of the best in the world but is performing less well in terms of future sustainability, according to the latest research by consultancy Mercer.

The Danish system tops the Mercer list of 25 pension systems, with the Netherlands in second place, just head of Australia, Sweden and Switzerland. Mercer produces its annual ranking based on 50 different criteria.

The Netherlands derives its high ranking from the way the pension system guarantees a liveable minimum income, news agency ANP says.

However, the Dutch score for future sustainability has gone down this year, Mercer said. In addition, the Netherlands can do more to make it attractive to save for a private pension and improve the protection for corporate pensions in case of bankruptcy.

The Netherlands has the toughest residency requirements for a state pension in Europe. To qualify, a person must have lived in the country for 50 years. A person who has worked in the Netherlands for 40 years is only entitled to 80% of the state pension.

Thank you for donating to DutchNews.nl

The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.

DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.

If you have not yet made a donation, but would like to, you can do so via Ideal, credit card or Paypal.