The future average Dutch defined contribution (DC) pension benefit increased by approximately 2 per cent in the fourth quarter of 2021 and first quarter of 2022, according to Aon Netherlands.

For example, a 40-year-old employee with a median income saw their future pension benefit rise from €1,049 to €1,073 per month. In the first quarter of this year in particular, interest rates rose, which has a positive effect on the expected distributions. Expectations about share prices remained intact despite the current tensions, Aon said.

One in seven employees in the Netherlands now has a DC scheme with the figure set to increase as the new pension system comes into effect, making DC schemes the default. Aon noted that fluctuations in benefits will be common but there are mechanisms in place designed to dampen those fluctuations.

Aon's Pension Comparator, an index that Aon uses to gauge the potential of DC schemes every quarter, stood at 109 points on 1 October last year.

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