De Nederlandsche Bank published quarterly figures showing the Dutch pension sector’s average funding ratio declined in the fourth quarter of 2024, as the value of liabilities increased more than the value of investments. Total investments rose by EUR 20 billion to EUR 1,686 billion, while aggregate liabilities increased by EUR 45 billion to EUR 1,451 billion, partly because liabilities incorporate indexation for 2025. Despite the quarterly decline, the average funding ratio remained above its level a year earlier (114.6%), which DNB attributes to positive returns on variable-yield investments outweighing the negative impact of falling interest rates and granted indexation. The policy funding ratio, calculated as the 12-month average, fell 0.5 percentage points to 117.2%.
De Nederlandsche Bank 2025-01-28
De Nederlandsche Bank reports Dutch pension funds’ average funding ratio fell 2.1 percentage points to 116.2% in Q4 2024
De Nederlandsche Bank reported a decline in the Dutch pension sector's average funding ratio in Q4 2024, as liabilities rose more than investments. Total investments increased by EUR 20 billion to EUR 1,686 billion, while liabilities grew by EUR 45 billion to EUR 1,451 billion, partly due to 2025 indexation. Despite the decline, the average funding ratio stayed above the previous year's level, supported by positive returns on variable-yield investments.