Why a new system?

The rules for our pensions worked well for years. But they are becoming increasingly constrictive. After all, much has changed in society in recent years. Demographics, the economy and the labor market have changed. People are living longer. There are fewer working people compared to retirees. People no longer work for one employer all their lives, but change jobs more often or start their own businesses. Pensions have also become more expensive in recent years, there has been no indexation of pensions for too long and pension premiums have risen. Our current pension system is less suited to this changed society. That is why the government, together with employers’ and employees’ organizations, has entered into a pension agreement containing new pension schemes. This is the new pension law, the Future of Pensions Act.

On average, our lifespans continue to increase
Each month, employee and employer pay premiums to accrue a pension. When today’s retirees started saving, life expectancy was 75 years. But on average, we are living longer these days. That means that today’s seniors are retiring for much longer. And that also means that the pension funds have to pay out more and for longer than was previously calculated.
The labor market has changed
The current pension system works well when people work for the same employer all their lives. But that is not the case today. People change jobs more often. Or they stop working for a while. And when they go back to work, they sometimes work less or become self-employed. Workers who become self-employed halfway through their career do not accrue enough pension.

A future-proof pension system 
Pension funds have more assets than ever, but participants do not see that reflected in their wallets. The new system will provide earlier prospects for indexation. With the new pension rules, we can ensure that we can count on a comfortable old age in the future too.