As 2023 draws to a close, European Pensions takes a look back at some of the biggest and most-read stories from the year

EC asked to investigate Dutch compliance with EU pension law

One of the biggest stories of the year was as recent as November, when the Dutch MEP, Antonius Manders, wrote to European Commissioner, Mairead McGuinness, to ask the European Commission to investigate Dutch compliance with European regulation on indexation. Manders, who also made a formal complaint, said he had a personal interest in the issue because it is mandatory for him to be a part of the Dutch fund ABP. Manders explained that pension benefits and entitlements of most of the pensions in the Netherlands, including his, were obliged to calculate with discounts or non-indexation for the pensions in the period from 2008 to 2022. In this period mandatory Dutch pension funds did not index, which Manders said has caused a purchase power loss of around 25 per cent.

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France announces pension age increase

In April, French President, Emmanuel Macron, committed to increasing the country’s state pension age from 62 to 64. The reform has been deeply unpopular with the French public and sparked nationwide protests earlier in 2023. The proposed pension age reform process was scheduled to start in September, reaching 63 years and three months by 2027 and hitting the target age of 64 in 2030. The amount of time a person has to work to receive a full pension will rise from 42 years to 43 and a guaranteed minimum pension income will be introduced. This income level will be set at no less than 85 per cent of minimum wage for new retirees.

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Dutch Senate to debate Future Pensions Act

Another popular story involved the long-anticipated Dutch pension reform. The Senate in the Netherlands announced that it would debate the Future Pensions Act on 22 and 23 May. A vote then took place on 30 May and the new law entered into force on 1 July 2023, with pension funds having until 2027 to switch to the new pension rules. The Future Pensions Act includes a package of new pension rules that aim to lay the foundations for an updated pension system, which will shift focus from DB to DC style pensions.

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German state pension system on ‘verge of collapse’ without reform

In November, European Pensions reported on the comments made by Confederation of German Employers’ Association president, Rainer Dulger, and it proved popular with readers. Speaking to the Bild am Sonntag, the president of the think tank called for the retirement age in Germany to be linked to life expectancy. He warned that Germany’s state pension system is on the verge of collapse and may not be financially sustainable in five years’ time if reforms are not made. Currently, the state pension in Germany guarantees pensioners at least 48 per cent of the average wage until 2025. The state pension age is 65, although it is in the process of gradually increasing to 67.

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UK to pursue ‘pot for life’ pensions model

November was a busy month for pensions, as the UK’s Chancellor, Jeremy Hunt, announced that the government would explore a ‘pot for life’ pensions model. Hunt announced plans to offer employees a choice on their workplace pension provider as part of his Autumn Statement in what industry experts suggested could represent a “ground-breaking” shift for the UK pensions industry. Under the proposed pot for life or lifetime pension model, savers would be given the option to ask a new employer to pay pension contributions into their existing pot, with similar approaches already taken by countries such as Australia.

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