The Netherlands is working with the European Union to change rules that would allow foreign providers to enter the Dutch pension market, a move that could crack open one of Europe’s most tightly held pools of retirement savings worth an estimated €1.5 trillion to €1.8 trillion.
A system already in flux
The Dutch pension system is already in the middle of its most dramatic transformation in decades, driven by the Future of Pensions Act, known locally as the Wet toekomst pensioenen, or Wtp.
That law, which took effect on July 1, 2023, mandates a shift from traditional defined benefit pension plans to defined contribution structures. The deadline for completing the transition is January 1, 2028.
In English: instead of promising retirees a fixed payout regardless of market conditions, pension funds will now tie payouts directly to contributions and investment performance.
