2 million Dutch retirees could see pensions rise by up to 25%

Around 2 million pensioners in the Netherlands could see their workplace pensions rise by as much as 25 percent in 2027, according to new estimates. The potential increases come as 37 pension funds prepare to switch to the new Dutch pension system on January 1, although the final amounts are not yet confirmed.

Which Dutch pension funds could see increases in 2027?

A total of 37 pension funds are planning to switch to the new system on January 1, 2027, covering 7,7 million members, including around 2 million retirees. The funds cover sectors including government, education, retail, transport and the metal industry.

According to calculations by pension consultancy Aon, commissioned by NOS, pension increases of between 12 and 25 percent could be possible. Retirees at the ten largest funds making the transition could see their pensions rise by an average of 17 percent. Together, these funds account for approximately 95 percent of people switching to the new system in 2027.

The largest estimated increase is 22,4 percent for retirees from the retail sector, followed by 21,7 percent for those from the agricultural sector. For ABP, the Netherlands' largest pension fund, which covers government and education employees, Aon estimates an increase of 13,9 percent.

Retirees covered by PME, the metal and technology industry pension fund, could receive 12,6 percent more. The actual increase could vary depending on individual circumstances, with older retirees generally expected to receive smaller percentage increases than younger pensioners.

Why are Dutch pensions expected to increase?

The potential increases are linked to the Netherlands' transition to a new pension system, which changes how pension savings are managed and distributed. The changes affect supplementary workplace pensions rather than the Dutch state pension (AOW). Under the new rules, pension savings will be tracked in personal pension pots, making it easier for members to see how much they have accumulated. However, pension funds will continue to invest collectively and share financial risks.

As part of the transition, pension funds can also distribute some of their financial reserves among members. Some of these reserves must be kept as a buffer against potential investment losses and to compensate certain groups affected by the changes. Any remaining funds can then be distributed among retirees and people who are still working, according to NOS.

Retirees could see the additional money reflected in their monthly pension payments, while those still working would receive an increase in their accumulated pension savings. However, pensions under the new system will also be more closely linked to investment performance, meaning payments could rise or fall in the future.

When could Dutch pensioners receive higher payments?

The exact pension increases will depend on each fund's financial position at the end of 2026. One key factor is the funding ratio, which shows how much money a pension fund has available compared to what it owes current and future pensioners.

According to ABP, its funding ratio stood at 132,2 percent at the end of September 2026. If the ratio remains above 109 percent on December 31, the fund can provide compensation for pension increases that were missed in previous years, alongside an additional increase. ABP expects to announce its year-end funding ratio in late January 2027.

For ABP pensioners, the first payment under the new system is expected in February 2027, potentially including a back payment for January. From March, monthly payments will remain at the same level for the rest of the year. The final increase will vary depending on individual circumstances.

Pensioners can check their provider's website for updates, while those unsure which pension fund they belong to can find their pension details through Mijnpensioenoverzicht.nl.