Stress Test pension bad picks for Netherlands

amsterdam - Dutch pension funds are not very resistant to a deterioration of the financial climate. This is evident from the first European stress test by the European regulator EIOPA presented Tuesday.

The reserve and funding shortfalls of the four largest pension funds, which together account for more than half of the Dutch pension assets, walk in the scenarios of EIOPA to around half the gross domestic product (GDP).

Thus, the effects of the first European stress test for all countries by far the largest in the Netherlands. In Great Britain, a big pension country, deficits remain below ten per cent of GDP.

The scenarios of EIOPA is assumed huge losses on the equity and real estate portfolios of pension funds, coupled with continued low interest rates, which the funds calculate their future liabilities for hard cash today.

The Netherlands has a relatively large amount invested in equities compared to other European countries. Our calculation rules are relatively strict and we promise a lot when it comes to pensions. This means that our country is vulnerable to setbacks.

According to the report of EIOPA is the gap between the defined benefit and the actual pension assets in Europe at this time had risen to 428 billion euros. Under the stress scenarios is that hole in an amount between 755 and 773 billion euros.

Because many countries have higher discount rates than the European supervisor to see the results of national legislation, a piece rosy. The Dutch rules are already quite strict and in line with the method of EIOPA.