On the one hand, due to more lenient rules many pension funds do not have to implement pension cuts this year. On the other hand, the costs of pensions have increased substantially. Research by the Dutch Financial Daily Newspaper and PensioenPro (an online platform for information on pensions) shows that a 10% increase in pension premiums isn’t an exception. This is all due to low interests and lower expected financial returns.
For about five million people of the working population, premiums have increased and the accrual of pension has decreased. Five years ago, pension premiums were about 20% of an employee’s pensionable salary. Now, this percentage has increased to 25% or even 30%. This means that currently employees works about one and a half day per week only to pay for their pension. An employee’s overall earnings has therefore declined, although this also depends on the way an employer and employee split the increased costs of premiums. Two-thirds of (higher) premium is often paid for by the employer and the other third by the employee him-/herself. An employer cannot simply burden the employee with the increased costs. Many sectors and organizations are therefore discussing short-term solutions at the moment, so that they can quickly anticipate to the new pension system.