The Netherlands’ ING Pension Fund has received approval from De Nederlandsche Bank (DNB) to transition to the new pension system on 1 July 2027.

DNB has reviewed the pension fund’s plans to switch to the new system and granted its approval, with members’ accrued pensions to be transferred on 1 July.

ING Pension Fund said the approval marked the conclusion of a thorough assessment process, and it will continue with preparations to ensure the transition proceeds smoothly.

Ahead of its transition, the pension fund polled its members to assess their understanding of the new pension system.

It found that just 23.4 per cent knew that the fund would take on more investment risk following the switch.

More than two thirds (67.3 per cent) believed the approach would remain virtually unchanged, while 9.3 per cent anticipated a more cautious approach.

However, ING Pension Fund noted that its allocation to ‘risky’ investments was rising from an average of 30 per cent to almost 50 per cent.

This was due to greater investment in equities and real estate, and reduced exposure to bonds.

Younger members will have greater allocations to higher-risk assets than older participants.

When asked whether they understood why the transition to the new pension system was taking so long, 66.4 per cent understood that it was unavoidable due to the many parties involved and the required scrutiny by DNB.

During the transition, all pensions are expected to be increased from the fund’s buffers. Nearly two thirds (63.7 per cent) knew that this amount depended on two factors: their age and the current funding ratio at time of transition.

“One-third of respondents (33.7 per cent) incorrectly believed that only the funding ratio is the determining factor,” ING Pension Fund noted.

“Participants who are not yet retired were slightly more likely to be aware of this than pensioners (71.9 per cent versus 60.3 per cent)."

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