Longevity and Pension Reform

1
Longevity and Pension Reform

• Silver Economy Conference
• November 30, 2006
• Dick Sluimers
• Acting Chairman of the Executive Board
• ABP Pension Fund

2
Outline

• Dutch pension system
• Two pension challenges
• Ageing
• Collective versus individual pension arrangements
• Conclusion

3
The importance of supplementary pensions in the
Netherlands
Source IMF
4
The challenge of ageing
Source CBS
5
Assets held by private pension funds
Source OECD
6
World wide shift from collective to individual
pension schemes

• International accounting standards
• Propagation of individual choice

7
Collective vs. individual pension schemes

• Low costs due to returns to scale
• Individuals save too little
• People arent able and willing to choose
• Sound financial advise

8
Conclusions

• Collective pension schemes superior to individual
  schemes
• More differentiation and choice within collective
  pension systems