Dutch pension fund ABP reported a “good” return on investments, with a total return of 8.6 per cent in 2024, its annual report has revealed.

The fund’s funding ratio increased in the first half of 2024, but due to the central banks lowering their interest rates, it fell in the second half of 2024.

In addition to this, the funding ratios at the end of 2023 and at the end of 2024 were only 1.4 per cent apart but ABP said it was a “stable” year.

Given the fall in funding ratio, ABP said pensions could not be fully increased. There was a pension increase of 1.84 per cent for 2025, which compensated for half of the inflation (3.56 per cent).

However, 2024 was a “good” investment year for ABP, with equity investments doing particularly well.

Commenting on the outcome, ABP chairman of the board, Harmen van Wijnen, said: “We will end 2024 in a financial position that has remained quite stable. Even after interest rate cuts and the increase in pensions.

“If we were to move to the renewed pension scheme now, it would be possible to do so responsibly and in a balanced way.

“We are well on track. The money that now remains in the buffers will largely end up where it belongs: with you as a participant.

“We are convinced that the new system will work out better for everyone. I hope that the preparation can continue."

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