Pension reform may increase some payments in 2026, and experts warn of the risks
Millions of workers and retirees in the Netherlands are preparing to transition to a new pension system next year, where the old collective system will be replaced by individual accounts. Some pension funds are already indicating the possibility of increasing pensions in 2026, but experts warn that this new system could also lead to income decreases depending on economic performance.
Under the reform introduced in 2023, pensions will become more linked to investment returns and individual contributions. The level of risk will vary by age: funds for younger participants will be invested more boldly, while funds for older individuals will be managed more cautiously. Pensions will also be adjusted annually based on market performance and pension funds.
Major funds such as PFZW (for healthcare workers), PMT, and bpfBOUW are set to begin the transition in early 2026 — PFZW has already indicated that participants may see a 'significant increase' in their pensions.
But experts warn of the other side: economist Leontien Troijer from Rabobank and Professor Theo Nijhmann from Tilburg University confirm that the new system increases the likelihood of increases, but it also makes the possibility of decreases possible. Young people in particular may face greater fluctuations in their pensions.
One reason for potential increases is that the new system reduces the safety reserves that funds must hold, allowing for more money to be distributed to participants. However, for funds that have not yet transitioned — such as ABP (Government Employees Fund) — increases this year may be limited and depend on the available funding ratios.
In short, while many Dutch people may welcome the increase in pensions in 2026 thanks to the new system, these changes may bring with them a less stable financial journey, especially for the youth and for those whose funds are delayed in transitioning to the new system.