SDG 10.2 Financial sustainability
- Population ageing is putting pressure on the sustainable financing of the Dutch welfare state and accumulation of pensions and assets. As grey pressure is increasing, and green pressure is decreasing the ratio of workers to non-workers is decreasing.
- Withdrawals from pension assets reflect this pressure. For every 100 participants building up pension entitlement with pension funds in 2022, nearly 61 were receiving payments from these funds. And the trend is rising. Work-related pension entitlements amounted to just over half of income from work in 2022. The upward trend has stabilised.
- Dutch pension provisions are becoming less affordable. Pension premiums are accounting for an increasing share of employee wages. Estimated mean pension assets and the pension funds coverage ratio are stable.
- Dutch government debt fell to 46.5 percent of GDP in 2023. The debt-to-GDP ratio is at its lowest level since the credit crisis.
- Dutch household debt is increasing, but the value of household assets and savings is also increasing.
- The percentage of people in the Netherlands who are very concerned about their financial future was nearly the same in 2023 as in the previous year (28.7 percent versus 28.6 percent). But it is considerably higher than in 2021 (22.5 percent).
Dashboard and indicators
Resources and opportunities
in EU
in 2023
in EU
in 2023
in EU
in 2022
in EU
in 2022
Use
in EU
in 2022
Outcomes
in EU
in 2022
in EU
in 2022
in EU
in 2022
Subjective assessment
| Theme | Indicator | Value | Trend | Position in EU | Position in EU ranking |
|---|---|---|---|---|---|
| Resources and opportunities | Grey pressure | 34.4% ratio of over-65s to 20-64-year-olds in 2023 | increasing (decrease well-being) | 13th out of 27 in 2023 | Middle ranking |
| Resources and opportunities | Green pressure | 35.9% ratio of under-20s to 20-64-year-olds in 2023 | decreasing (decrease well-being) | 11th out of 27 in 2023 | Middle ranking |
| Resources and opportunities | Pension contributions | 10.0% of employee wages in 2022 | increasing (decrease well-being) | ||
| Resources and opportunities | Estimated mean pension assets A) | € 154,200 per household (2021 prices) in 2022 | |||
| Resources and opportunities | Coverage ratio pension funds | 114.6% of pension liabilities are covered on 31 December 2023 | |||
| Resources and opportunities | Government expenditure on public health | 7.5% of gross domestic product in 2022 | 19th out of 27 in 2022 | Middle ranking | |
| Resources and opportunities | Government expenditure on social protection | 15.5% of gross domestic product in 2022 | 12th out of 27 in 2022 | Middle ranking | |
| Use | Pension entitlements | 55% of present income is average expected pension in 2022 | 11th out of 27 in 2022 | Middle ranking | |
| Use | Pension beneficiaries | 60.8 per 100 active participants in pension funds in 2022 | increasing (decrease well-being) | ||
| Outcomes | Government debt | 46.5% of gross domestic product in 2023 | decreasing (increase well-being) | 12th out of 27 in 2022 | Middle ranking |
| Outcomes | Average household debt | € 107,099 per household (current prices) in 2022 | increasing (decrease well-being) | 24th out of 25 in 2022 | Low ranking |
| Outcomes | Average household morgage debt | € 201,100 per household with a mortgage debt (current prices) in 2022 | increasing (decrease well-being) | ||
| Outcomes | Currency and deposits per household | € 69,568 per household (current prices) in 2022 | increasing (increase well-being) | 8th out of 27 in 2022 | Middle ranking |
| Outcomes | Loan-to-value | 0.60 ratio of total mortgage debt to value of property (heads of household younger than 35) in 2022 | decreasing (increase well-being) | ||
| Subjective assessment | Concern about future finances | 28.7% of the population over 18 are very concerned in 2023 |
Colour codes and notes to the dashboards in the Monitor of Well-being
SDG 10 aims to reduce inequality within and between countries. So many aspects of this are relevant in the context of Dutch government policy, that we have divided SDG 10 into two dashboards. This second dashboard examines the financial sustainability of Dutch well-being and the financial situation of Dutch households.
Both households and the Dutch government incur debt and accrue wealth and capital. Financial liabilities of government and households have an impact on well-being of future generations. Financial systems may prove vulnerable when confronted with an ageing population, economic crises, geopolitical tensions and globalisation, but also with decreasing solidarity between generations or between population groups. The picture in this dashboard is fairly sombre, with six red and two green trends. Nowhere in the dashboard is the Netherlands near the top of the EU rankings.
Resources and opportunities relate to whether the welfare state is sustainably funded and pension and asset accrual puts pressure on future generations.
Use concerns withdrawal of resources from accrued capital. For every 100 participants building up pension entitlement with Dutch pension funds in 2022, nearly 61 received payments from these funds. The medium-term trend for this indicator is rising (red).
Outcomes concern incurred debt and sustainability of financial systems. The Dutch economy hardly grew in 2023, but government debt continued to decrease, to 46.5 percent of GDP at the end of 2023.