Recently, pension giant Aon conducted a comprehensive survey shedding light on employers' responses to the new Dutch pension legislation, and it reminded us of the classic Abba song title, "Does Your Mother Know?" Yet, the survey's standout revelation is a bit disconcerting – a staggering 45% of employers have not even begun preparing for the impending changes.
We are talking about a colossal €1.5 trillion in pension capital for both past and present participants, and this financial juggernaut needs to dock in its new position no later than January 1, 2028 – a mere four years away. A key aspect of the new system is increased flexibility, a departure from an outdated pension law crafted decades ago under different economic and demographic circumstances. Steering this financial supertanker to its new starting point demands a massive effort from pension providers, not only ensuring logistical readiness but also guaranteeing the timely and accurate transfer of every individual's rights.
Undoubtedly, all pension institutions and related stakeholders are diligently working towards "P-day." However, the success of this operation hinges largely on you – the participant. We assume employers have already educated themselves and, if necessary, secured professional support to guide you through the impending changes. Yet, it does not seem entirely convincing, and many will soon start managing your expectations.
Wondering why this matters? In a previous publication, Dutch Voluntary Private Pension Makes More Sense Than Ever, we explained how contributing to a Dutch pension scheme, even for just a couple of years, can lead to significant additional pension income when you start early.
Our recommendation? Start asking questions. If your employer has not initiated discussions about the pension changes, nudge them. P-Day will arrive sooner than you think, and being informed about what to expect is crucial. Consider it an excellent start to 2024 if your inquiries spark meaningful conversation.