Dutch Authority for the Financial Markets finds serious shortcomings in retirement choice guidance at all eight pension providers reviewed

The Dutch Authority for the Financial Markets (AFM) published its first compliance review of pension choice guidance, identifying shortcomings at all eight pension funds and insurers examined. Participants were not always informed of every available option and often received incomplete, incorrect or late information about the consequences. These failures can lead to unsuitable choices and financial harm, particularly because retirement choices cannot subsequently be reversed. Following its 2025 report on designing guidance around participants’ needs, the new review examines how guidance is delivered at retirement. Providers must actively inform participants about all available choices through their preferred communication channel and explain both individual and combined effects on pension income. Concrete amounts must show how benefits change before decisions become final, with participants still able to revise their choices. Some participants using paper communications received calculations only after their decisions were binding. The review also identified errors in online pension planners and inconsistencies across documents. Providers must test planners at launch and after every change, ensure communications match scheme rules, and make essential explanations easy to find and understand. Boards remain responsible where tools or guidance are outsourced. All eight providers were notified of breaches and must make improvements to meet minimum legal standards. The AFM expects providers across the sector to assess the findings and address relevant weaknesses immediately. It will intensify supervision of choice guidance and conduct further reviews in the coming years.