Employers risk fiscal disaster with delayed Dutch pension transition

The Dutch pension system is undergoing its biggest transformation since its inception. More than €1747 billion in pension assets are being transferred to the new system. Yet recent figures show that many employers are acting too late, putting employees at risk of losing up to 70% of their pension savings. This concerns approximately 1.6 million employees who build up their pensions through their employer with pension insurers and premium pension institutions.

This is a critical transition that demands the utmost care and precision. Every link in the chain plays a crucial role: pension funds, insurers, social partners, regulators, advisors and IT providers. The chain is complex, but employers must now take action to prevent a tax disaster.

Looming fiscal consequences

Employers can expose their employees to severe tax consequences. A recent example from the Dutch Tax Administration's Central Point of Contact for Pensions illustrates this: an employee with €200,000 in accrued pension assets could face a tax bill of nearly €140,000 if the deadline is missed.

Employers must take the lead, now

Employers must take the lead now to make this transition successful. Figures from IG&H’s Pensioen Marktmonitor  show that 59% of employers and 33% of pension funds plan to switch only after 2026. This creates a bottleneck for advisors and increases the risk of missed deadlines. The financial consequences are significant: participants could lose up to 70% of their pension savings.

Transitioning an insured pension scheme at a large employer can easily take 18 months. Employers aiming for January 1, 2027 must start immediately. If that’s not feasible, January 1, 2028 is the fallback plan. “Think of it like catching a flight. Your gate closes in an hour. When do you check in? Fifteen minutes before, risking that you won’t board in time and miss the flight, or now, while there’s still plenty of time to get on board?” explains Frans Liem, Managing Director Pension IG&H.

The message to employers couldn’t be clearer: act now, not later.

IG&H Pensioen Monitor

The IG&H Pensioen Marktmonitor Changes en Chances provides statistics, insights and an overview of 2025. The Monitor offers insights into transition progress, risk preferences and cost levels within the pension sector. Please note this market monitor is published in Dutch.