Let’s go to the annual report of BPMT-one of our clients-look to answer this question.
In 2014, the first report which is easy to find, we see that invested assets in 2010 had a value of 37.5 billion, and in 2014 this was up to 58.7 billion (Pmt, page 9).
The invested capital end 2017 (https://www.bpmt.nl/client/bpmt/…, page 18 (15 without table of contents)) is 71.7 billion and comes from 68.2 billion in 2016.For this fund money that the value has almost doubled since 2010.
Many other pension funds are showing the same value development.Funds that deviate from this are funds with a proportion of pensioners, in which the accumulated assets can decrease, which is in line with the purpose of the fund.
The pension problem is not that there is too little money in the funds, or that the investment returns are too low.The problem is that the so-called coverage rate of a pension fund is based on future commitments and return expectations. The interest rate that may be used in calculating this has been very low for years, among other things the economic Stimulating Program鈩?s of the ECB and FED (central banks of the EU and United States of America). As a result, at BPMT you see a decrease in the coverage rate, while the capacity increases and the investment returns are positive (2017 annual Report page 13 vs page 18). Other major pension funds struggle with the same problem.
For the sake of completeness, I make the note that the pension in the Netherlands consists of three parts:
- The AOW allowance.
This is the biggest benefit for many people
Where parts 2 and 3 have a structure, the AOW is largely financed from a cover system: the employed persons pay with tax payments for the pensioners.If the relationship between workers and retirees has changed this because AOW a PAYG system is a big impact on the AOW.
Over the past decades, the awareness has grown that people live significantly longer, and therefore the AOW at 65 years of age is becoming priceless. To limit this, the retirement age is raised.
This is in a nutshell the answer to the question of whether more money is going out of the retirement pot when it comes in (no) in the context of the whole pension issue.
No, I find that question ALL-PREDOMINANT IMPORTANT..:
No politician has ever dared to tell you, so I suspect that there is MORE to come in every month than it goes..
Just like the question: In which year is the retirement pot empty, if we continue as now