It's time for employers to take action: new pension system

In July 2024, the Nibud published a revealing report: "More than half of Dutch people under the age of 67 know little to nothing about the changes in the new Pension Act", according to their survey. Some groups are better informed than others, but according to the director of the Nibud, the changes affect us all. All workers should be well informed, as a lot will change. So it is time for employers to intervene, because a large part of the pension comes from them. What are the changes about and how do you intervene as an employer? Read it here.

What will change in the new Pension Act?

In the new Dutch pension system, which must be introduced by every pension provider from 2028, everyone will receive a premium arrangement. This means that there are agreements with the employer and pension provider about the contribution, which together with the return form a personal pension pot. On your retirement date, you buy a benefit with this, but the exact amount is not known in advance. The rules on monthly payments have been relaxed, allowing pensions to rise (or fall) more quickly with the economy. There is a buffer to prevent excessive fluctuations.

In addition, you can now participate in a pension scheme from the age of 18. You can also withdraw a maximum of 10% of your pension pot on your retirement date, which requires a change in the law that is expected to come into effect on 1 January 2025 at the earliest.

Employees must deal with their pension more consciously

Despite the new regulations, approximately 75% of people indicate that they will not change their behaviour or thoughts about their pension. In the new system, the risks lie more explicitly with the individual pension participants, which means that people must take more responsibility for their own pension. It is essential to regularly check how your pension is going and make adjustments where necessary, for example when changing jobs or becoming self-employed. The ‘survivor's pension’, if you or your partner passes, also requires attention. This is a major difference from the past. There must be an awareness that pensions are something for the long term and that the benefit can vary with the economic situation.

Employers' expectations

A key finding from the Nibud research is that a lot is expected of employers, especially by the younger generation (25-34 years). At Equip, we also see the crucial role that employers play in this. Our own research shows that many people experience financial insecurity (5 out of 10, read more here). This is not about making ends meet at the end of the month, but mainly about a lack of knowledge about their financial possibilities. The new pension schemes reinforce this even more; it is a perfect example of how employees are insufficiently informed about their own finances.

Equip offers the solution

The solution is clear: employers must pay more attention to the financial security of their employees. Our financial planning platform offers your employees the extra explanation and planning they need, including in the area of pensions. Equip helps them understand and navigate their financial future, which leads to a more informed and financially secure workplace.