Belgian pension funds delivered an average return of 3.6 per cent in 2025, in a year marked by geopolitical tensions and heightened market uncertainty, according to PensioPlus’s annual report.

The report showed that as of 1 January 2025, there were a total of 4,561,856 affiliates within the 2nd pillar with a total of €112.9bn in accrued pension reserves.

PensioPlus president, Jan De Smet, said this performance fits into a clear and consistent long-term pattern.

“Historical data shows that, despite short-term fluctuations, pension funds achieve inflation-resilient and stable returns over several decades. For example, the average nominal return over the past 41 years is 6.2 per cent,” he continued.

“After deducting inflation, this gives a real return of 4 per cent. In doing so, the Belgian pension funds once again underline their responsibility as stable long-term investors who achieve a substantial and sustainable real return for their members.”

Smet also noted that Belgian pension funds remain highly diversified in their investment policy, diversifying across the various asset classes (bonds, shares, real estate, infrastructure, miscellaneous) as well as geographically.

At the end of 2025, Belgian pension funds invested an average of 35 per cent in equities, 47 per cent in bonds, 3 per cent in real estate, 3 per cent in liquidity and 12 per cent in various alternative asset classes.

The yield on the bond component in 2025 was mainly driven by a fall in interest rates and a decline in the credit spread on corporate bonds.

Meanwhile, the equity component performed strongly on the European markets. The rise in the US stock markets was partly offset by the stronger euro against the US dollar.

In addition to this, Smet noted that the European Union is looking at institutional investors to co-invest in the future growth of the European economy through the Savings and Investment Union and suggested that Belgian pension funds are "playing their part" by investing mainly in the real economy.

2025 also saw Belgian pension funds continue to work on implementing the Digital Operational Resilience Act (DORA) regulations, which came into force on 17 January 2025.

And in the autumn of 2025, the European Commission presented new initiatives around auto-enrolment, the Pan-European Personal Pension Product (PEPP) and a possible revision of the IORP II Directive.

PensioPlus has drawn up a position paper on this and will actively engage in the debate with European and national stakeholders. One of the key messages in this paper is the importance of proportionality and respect for the institutional diversity of pension funds within Europe.

Looking ahead, in 2026, PensioPlus said it will continue to work on implementing several proposals to give concrete form to the ambition of a minimum contribution of 3 per cent.

To achieve this, the organisation has drawn up a discussion paper that sets out several approaches and building blocks for achieving this objective, to serve as inspiration for engaging in debate on this matter with various stakeholders.

Smet also noted that the introduction of the new pension statements in 2026 will mark a further step in the implementation of the Transparency Act and that PensioPlus will do its utmost to assist its members in this regard.

“As an association, we are fully aware that the reporting obligations and requirements placed on the management of a pension fund place a relatively heavy burden on smaller pension funds,” Smet said.

“We are making it a priority to support them as much as possible in this regard and to further strengthen their involvement in the association’s operations.”

“At PensioPlus, we remain committed to defending and promoting the sector. In this way, we help to ensure the long-term affordability of pensions and ensure that members can count on a full income and level of prosperity after their active career,” Smet concluded.

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