The average funding ratio in the Dutch pension sector fell to 116.2 per cent in Q4 2024, after the value of the liabilities increased more than the value of the investments, De Nederlandsche Bank (DNB) has revealed.

The update showed that total investments in the Dutch pensions sector increased by €23bn to €1,686bn, while total liabilities increased by €45bn to €1,451bn, partly due to the inclusion of the 2025 supplement.

As a result, the coverage ratio, which shows the current financial position for Dutch pension funds, fell by 2.1 percentage points compared to the previous quarter.

However, this still marked a year-on-year improvement, as the coverage ratio for the pension sector stood at 114.6 per cent a year ago.

DNB attributed this to the positive return on business securities, noting that the effect of this on balance was higher than the negative effects of the decrease in interest rates and the allowances granted.

DNB also confirmed a small decrease (0.5 percentage points) in the policy coverage ratio, to 117.2 per cent, which was caused by the fall in the coverage ratio.

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