Netherlands: Transition to a New Pension System—Future Pensions Act
The Future Pensions Act (Wet toekomst pensioenen) has been in force since 1 July 2023. Its aim is to make the Dutch pension system more transparent, more personalised, and better aligned with modern careers. A large number of pension funds switched to this new system on 1 January 2026, bringing approximately 9.5 million workers under the new system. All parties involved must comply with the new rules by 1 January 2028 at the latest.
In the new pension system, there is no longer a fixed pension amount. Pension accrual takes place through a defined contribution scheme, whereby funds are periodically deposited and invested. The final amount of the pension depends on economic developments and investment results. Younger employees can take more investment risks than older employees, as they have more time to absorb market fluctuations. Employers and employees may also agree to set aside additional funds to cushion potential investment setbacks.
Future Pensions Act
The Future Pensions Act (Wtp) came into force on 1 July 2023. The aim of this Act is to make the pension system more transparent, more personalised, and better suited to modern careers. As of 1 January 2026, a large proportion of pension funds will have made the transition, bringing approximately 9.5 million workers under the new system. By 1 January 2028 at the latest, all pension funds, employers and social partners must comply with the Wtp. Pension schemes that started after 1 July 2023 must be set up in accordance with this Act immediately.
Key changes
The biggest difference with the old pension system is that there is no longer a fixed promise regarding the amount of the pension. In the new system, everyone accrues pension through a contribution scheme. This means that contributions are paid monthly and invested. Employees can see how much is being contributed to their pension and how their personal pension capital is growing. The final amount of the pension is therefore not determined in advance. If the economy and investments perform well, the pension may increase. If the economy performs less well, the pension may also be lower. In general, the chance of an increase is higher than in the old system.
The new system also takes the age of the employee into account. Younger employees can take on higher investment because they have more time to recover from potential losses, while older employees take fewer risks because their retirement is closer. In addition, employers and employees can agree to set aside additional reserves, which can be used to absorb adverse investment outcomes.
Key Points for HR
HR is responsible for communicating clearly and promptly with employees about changes to their pension scheme. This includes explaining the transition to a defined contribution scheme, the consequences for pension accrual, the investment risk, and any available options. The duty of care of the employer and pension administrator has been increased; employees must be actively guided in their choices and informed about the impact of the transition.
