What are the consequences of the transition to the renewed pension system? What is involved in the transition, and why is it so complex? Did participants have enough say in structuring the renewed system? APG chair Annette Mosman addressed these questions and others during her appearance on BNR’s Big Five. In the week of April 1, five leaders from the sector will be interviewed on this radio program about the future of pensions.
During the broadcast, Mosman also explains how the relationship between the fund and the administrative organization will change in the new system. She also discusses the political pressure that is still being applied to change the system.
Safeguard
In the renewed system, pension funds are allowed to maintain lower buffers, which means they can take a little more investment risk. This leads to a higher expected pension result. Mosman’s comment on that risk: “The best way to protect ourselves is for all of us to act together. By investing collectively, that risk is shared between the different investment categories, as well as between participants. These are the most important safeguards, which enable a collective to take more risks than an individual. We have a very good system in the Netherlands. The core of this, collectivity and solidarity, has so much value.”
Another aspect that is valuable is the long-term horizon that a pension fund can apply in its investment policy. Mosman: “Our responsibility, and that of the funds, is to be there for current generations, but also for future generations. This allows us to invest for the long term, through multiple cycles. We have excellent people for this, and, as an individual participant, this gives me access to the best investment knowledge - access that I do not have through an investment account at a bank.”
You can hear the entire broadcast (in Dutch) by BNR’s Big Five here.