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The Netherlands - Retirement Provisions: The Dutch Patient - by Bernard M. S. van Praag

All over the world the Dutch retirement system is considered one of the best but at home it has come under fire. Serious questions are being raised about the stability and sustainability of the pension scheme. Are the concerns justified?

The Dutch pension system consists of three pillars: a basic state old–age pension on a pay-as-you-go basis for all citizens, a mandatory funded occupational pension for employed workers and voluntary pension insurance, mainly used by self-employed.

The main components are the first two mandatory systems, each providing about 45 percent of the pensions, with private insurance covering about 10 percent. Together the state pension and the occupational pension provide about 70 percent of average lifetime earnings (subject to differences in earnings and duration of employment over life).

Read more: The Dutch Patient

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