The Netherlands’ retirement income system comprises a flat-rate public pension and a quasi-mandatory earnings-related occupational pension linked to industrial agreements. Most employees belong to these occupational schemes which are industry-wide defined benefit plans with the earnings measure based on lifetime average earnings.

The overall index value for the Dutch system could be increased by:

  • introducing a minimum access age so that it is clear that benefits are preserved for retirement purposes
  • raising the level of household saving
  • increasing the labour force participation rate at older ages
  • providing greater protection of members’ accrued benefits in the case of fraud, mismanagement or employer insolvency

The Dutch index value increased from 79.2 in 2014 to 80.5 in 2015 primarily due to a higher household saving rate.


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