NETHERLANDS: Dutch pensioners growing costly

By Elizabeth Pfeuti THE NETHERLANDS (Global Pensions), May 14, 2008: Early retirement and increased longevity has forced the Dutch central bank (DNB) to make a €500bn contribution to cover increasing future benefits payments. DNB released a study showing an average 8.2% increase in benefit payments since 1997 with a spike of 11.4% in 2007 costing €21bn. The DNB report stated: “The increase in pension benefits is caused by the double greying of the population: the proportion of elderly citizens is growing – and part of this category has already gone on early retirement – and the elderly live longer, too.” The bank also cited falling interest rates as problematic by making pension provision more expensive. It estimated more money would have to be contributed to cover these higher payments in future. © Incisive Media Ltd. 2008.