The average funding ratio of Dutch pension funds dropped by 1 percentage point to 118.3 per cent in the third quarter (Q3) of 2024, new statistics from De Nederlandsche Bank (DNB) reveal.

The funding ratio is below the 118.9 per cent level at the end of Q3 2023.

In addition, the policy funding ratio shows a decrease of 0.8 percentage points compared to the previous quarter. The policy funding ratio is the average of the 12 monthly funding ratios.

DNB said the drop is caused by the fact that the average funding ratio in Q3 2024 was lower than in the same quarter a year earlier.

Over the quarter, total investments increased by 4.9 per cent to €1,662bn, while total liabilities increased by 5.7 per cent to €1,405bn, which DNB attributed to a fall in interest rates.

Although investments also increased partly because of this, the increase did not outweigh the increase in liabilities, DNB said.

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