Mark hails from the Emerald Isle but has been living in the land of cheese and deep-fried-indiscrimi...
68 Pension funds to be cut as of April 201322 February 2013, by Mark McDaid
On the first of April this year a total of 68 Dutch pension funds will be cut as they struggle to deal with their poor financial position. A total of 5,6 million people will be affected by these cuts which range from 0,5 percent all the way up to seven percent reductions.
Not only retirees but also those still working towards their pension will see cuts made and a total of 19 funds are facing the uppermost reduction, including supermarket chain Super de Boer and the fund for Hairdressing industry.
Though the number of reductions which will be implemented is lower than thought last year (when 103 pension funds were earmarked for cuts) the remaining 80 percent of the funds will not benefit from any wage or price inflation throughout 2013.
All of the country's 415 pension funds are required to have a 105 percent coverage buffer according to regulations, but low interest rates and increasing life expectancy have caused problems over the past few years. Despite this though the average fund buffer has risen to 102 percent from 98,2 percent last year.
Photo by Flickr user *martin*
Though this is the first time in history that such a large proportion of retirees and pension-building employees will see a cut in their pensions, it will be a cause of concern considering the rapidly aging population in the country.
For a full list of the pension funds to be cut click here.