Inflation won’t hit our Dutch pension system hard

An interview

You can find the interview (in Dutch) in the left column on this website (September 2013).

The interview was given for the Pensioen Forum 2013 that will be held on 1 October in Amsterdam.

Summary:

My response is that it won’t hit the system. The system is based on nominal pensions. Assuming that with some inflation we will also experience higher interest rates the system as such will show healthy. The problem is though, that the members of schemes will experience that they can’t buy as much as what they expected for the same money. So the members will be the victims. My suggestion is that we that we have a State pension that provides a decent pension level. That would be a higher level than currently is the case. In exchange I would suggest that we increase the retirement age to, say, 75. This would imply working longer. In order to achieve this our challenge as a society is to help people do what they really like to do. Work that feels close to their hearts. “Creating a Life and Work that we love and don’t want to retire from” is in my view key to the pension issue we face. And if we do so, a pension that delivers purchasing power during the pay-out comes within reach again.

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