These 5 trends affect your pension

30 April 2019


Online pension administrator BeFrank has identified 5 major pension trends – changes in society that will have a large impact in the years ahead on both the policies of pension administrators and pensioners’ lives.

Trend 1: Multiple incomes
A growing number of pensioners have multiple sources of income: their State Pension, their workplace pension, and a salary. They have made a deliberate choice to remain in the workforce. Data supplied by Statistics Netherlands (CBS) shows that, in the last quarter of 2018, 17 percent of people in the Netherlands between the ages 65 and 70 were still employed, compared to less than half this rate at the start of this century. There are currently around 3 million people in the Netherlands aged 65 and over. ‘The traditional idea of working all your life and then retiring at a fixed age to a life of leisure has become outdated,’ says Jan Hein Rhebergen, BeFrank’s Commercial Director. ‘A survey we conducted some time ago revealed that most people who are currently of retirement age feel fit, are mobile and lead very active lives.’

Trend 2: Our individualistic society
We no longer feel compelled to join a union or other associations or societies, and we are less likely than in the past to be part of a religious community. Many Dutch people are also inclined to take charge of many aspects of their lives. Our increasingly individualistic society also has an impact on our pensions. Rhebergen: ‘This focus on the individual and the pursuit of individual interests also means we’re eager to manage a lot of our own business. And if you’re savvy enough to take out the right health insurance to suit your needs, it only makes sense that you would start planning for your financial future as well. We believe it’s important that people keep control of this themselves, so they can work out how much money they’ll need to maintain a good standard of living in the future.’

Trend 3: Digital household finances
Saving enough money for your retirement requires financial savvy – unfortunately, that’s exactly what’s lacking in a growing number of Dutch homes. One of the main culprits is that most of us increasingly manage our administration electronically. Whether it’s a phone bill or our Netflix subscription: many of us rarely or never see any printed invoices any more. It’s no wonder that a whopping four in ten Dutch people have trouble keeping track of their finances and spending habits. ‘The fact that we have access to so many digital resources should really work in our favour,’ Rhebergen says. ‘All BeFrank’s services are available at the push of a button: our app provides you with a comprehensive overview of both your pension history and your future.’

Trend 4: A second home
Pensioners increasingly have a second source of income: the rental of a second home. Encouraged by the economic upturn and record-low interest rates, more Dutch people are investing in a second home. In some cases they purchase the home, but some might also move in with their partner and decide to keep on their home and rent it out. We’ve seen sharp growth in this particular market since spring 2016. Rhebergen: ‘It’s becoming more common for people to use these rental earnings to supplement their income, as well as for future savings.’

Trend 5: Sustainable initiatives
Whether it’s about buying organic products or driving energy-efficient cars, millennials tend to be pretty clued in when it comes to sustainability. In fact, they expect the same of their pension administrator, as demand for sustainable pension initiatives is set to further increase in the coming years. ‘There is a growing interest in sustainability across the board,’ Rhebergen says. ‘Six months ago we launched the Sustainable Impact Dashboard, which allows pension scheme members to see how their retirement contributions protect the environment and help to create a cleaner planet. So our tool not only creates awareness; it actually makes pensions a lot more fun as well.’

About BeFrank
BeFrank has been active in the group pension market since 2011 and is the first pension premium institution (PPI) in the Netherlands. BeFrank offers an online pension, straightforward communications and innovative services. It is part of NN Group.

For more information contact Isabelle van Ast. E-mail:, Tel: +31 (0)20 5621118.