The Dutch Authority for the Financial Markets has published guidance for providers on developing more “future-proof” third pillar pension products, following research that found positive developments but also clear areas for improvement. The guidance aims to reduce customer disappointment by ensuring the eventual pension benefit aligns with what customers can reasonably expect. The AFM highlights the accumulation phase as critical to the final payout and a point where customers still have choices, placing particular responsibility on providers to explain product mechanics and what customers should and should not expect. The guidance addresses, among other issues, when savings products may not be the best option, the role of risk reduction within third pillar offerings, transparency on the realistic payout and how it is presented to customers, opportunities and risks when third pillar pensions are offered via an employer, the importance of understanding tax rules, and the need to periodically reassess the target market and distribution approach.
Dutch Authority for the Financial Markets 2025-11-19
Dutch Authority for the Financial Markets publishes guidance to improve the quality of third pillar pension products
The Dutch Authority for the Financial Markets has issued guidance for providers to develop more "future-proof" third pillar pension products, emphasizing aligning benefits with customer expectations. The guidance focuses on the accumulation phase, transparency in payout expectations, risk reduction, and the role of employers, while stressing the need for providers to periodically reassess target markets and distribution strategies.