No Smoke, No Mirrors: The Dutch Pension Plan
Below summary by Chris Walker
When you retire, can you be sure your pension fund will have enough money in it to deliver your pension? This is a real issue in the US, where the most recent data suggest that public funds are holding just 67 cents for every dollar they owe to current and future pensioners.
The Netherlands, on the other hand, has no such problems. Through proper funding, being very disciplined and using rigorous valuing methods, Dutch pension plans are fully funded to the tune of $1.05 in the dollar, as a minimum.
Calls are increasingly being made in the US for the American pension plan system to be seriously overhauled – with the Dutch system being held up as the one to emulate.
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Frequently Asked Questions about this Article…
The Dutch pension plan system is successful due to its proper funding, disciplined management, and rigorous valuation methods, ensuring that pension plans are fully funded with at least $1.05 for every dollar owed.
Dutch pension plans are fully funded with at least $1.05 for every dollar owed, whereas US public funds hold only 67 cents for every dollar owed to current and future pensioners.
Calls for overhauling the American pension plan system are due to its underfunding issues, with public funds holding only 67 cents per dollar owed, compared to the fully funded Dutch system.
The US can learn from the Dutch system's approach to proper funding, disciplined management, and rigorous valuation methods to ensure pension plans are adequately funded.
Yes, Dutch pension plans are often held up as a model for other countries due to their successful funding and management strategies.
Dutch pension plans are required to be fully funded with at least $1.05 for every dollar they owe, ensuring financial stability for pensioners.
Disciplined management in Dutch pension plans ensures that funds are properly allocated and managed, contributing to their full funding and financial health.
Dutch pension plans use rigorous valuation methods to accurately assess their funding needs and ensure they remain fully funded.
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