Half of Dutch employees have little confidence in own pension fund

Over half (55 percent) of employees who build up their pension via their employers have little or even no confidence in their pension fund or pension insurer. This is especially the case for employees with lower levels of employment and those aged between 35 and 45 years. Compared with people who are more confident in their pension providers, they are more often worried that their income at later ages will be insufficient.

One in ten employees have no confidence at all in pensions fund

At the beginning of 2012 46 percent of employees who save for their pension via their employers said they did not have much confidence in their own pension fund. Nine percent even reported that they had no faith at all in their pension fund. Only 3 percent reported they had a lot of confidence in the pension provider. Around 8 percent did not have an opinion.

Confidence in pension provider among employees who build up their pension via their employer, 2012

Little confidence among lower educated and 35-44 year-old employees

Employees with lower education levels are more likely to have little confidence in their pension fund or insurer than those with higher levels of education: 60 versus 51 percent. Employees aged between 35 and 45, too, often say they have little faith in their pension provider compared with employees in other age groups. A relatively large share of the youngest employees – 17 percent – have no opinion in this respect.

Confidence in own pension provider by age and education level, 2012

Little confidence correlates with concern about income at older ages

Confidence in the own pension provider correlates with worries about the level of income at older ages. Nearly 20 percent of employees who have no confidence in their pension fund or insurer say they are very concerned that their income at older ages will not be enough. For employees who do have confidence in their pension provider, this is 4 percent. In the group who do have faith in their pension providers, 30 percent are not at all concerned about their later income, compared with 13 percent of employees who do not have confidence in their pension providers. These results hardly change when differences in age, education level and income between employees who do and do not have confidence are taken into account. 

Concern that income at older ages will not be sufficient by confidence in pension provider, 2012

Rianne Kloosterman and Karolijne van der Houwen