- Capital markets — Financial regulation — Occupational pension funds
Pensions in the EU are vulnerable to reduced economic growth, adverse developments in financial markets, and an increasing life expectancy. The increase of the old age dependency ratio contributes to concerns about the sustainability of pension systems. Nonetheless, the pension system in the Netherlands is one of the most sustainable in the world, ranking second in the Mercer Global Pension Index. The Dutch pension sector manages a significant EUR 1400 billion in assets for pensions that are primarily funded through legally compulsory schemes related to employment pension schemes. This chapter examines whether the development of a personal pension system in Europe and in the Netherlands coincide, and if the Dutch system can contribute to a policy framework for European personal pensions. It then considers the reasons why a European market for personal pensions has been proposed.