Dutch pension fund PFZW reported a 0.4% investment return in the first quarter of 2026 after transitioning 3.1M participants into the Netherlands’ new pension system at the start of the year.
The fund said pension incomes were increased by 12.4% as part of the Jan. 1 transition to the new framework, which ties pension outcomes more closely to investment results.
In the release, PFZW Chair Joanne Kellermann said the new system is better suited to the modern labor market, noting pensions can grow more easily when things go well, while remaining as well-protected as possible when things go wrong.
PFZW’s report cited geopolitical tensions, including the war in the Middle East, as contributing factors to market uncertainty during the quarter and raised concerns about the economy, investment returns and pension levels.
Under the new pension structure, returns are split into two categories: protection return and excess return. The protection return, designed partly to shield participants from interest-rate fluctuations, was 1.7% in the first quarter. Excess return, which has a greater impact on younger participants, was negative 1.3%.
The fund said its investment portfolio remains globally diversified across equities, private equity, real estate, infrastructure, credit and fixed-income assets. Assets under management totaled €253.3B as of March 31.
For retirees, excess return determines annual pension adjustments. PFZW said reductions in pensions in 2027 would not be an issue, even in the event of a negative excess return because the solidarity reserve is sufficiently funded.
Leave a comment