The Dutch Pension System Is the Best in the World Again, While Undergoing Its Largest Overhaul

Every month, a part of your salary goes to a pension fund you probably never chose. If you ever wonder whether that money is in good hands, a new global ranking has an answer.

On October 20th, the Marsh CFA Institute Global Pension Index ranked the Dutch pension system first for the fourth year in a row. The score improved, even though the system is currently being rebuilt.

Why Does The Netherlands Keep Winning?

This report compares 55 pension systems worldwide that together cover two-thirds of the world’s population. Each is graded on adequacy (how much people get), sustainability (whether the money will still be there) and integrity (how well the system is run). Only 6 of the 55 systems scored an A.

The Dutch score improved to 85.8, from last year’s 85.7. Denmark was second with 84.1, Iceland 3rd with 84.0, followed by Singapore, Israel and Australia. The Dutch score for adequacy was 87.7, the highest of all countries. Sustainability was 82.6, and integrity 87.2.

The difference with some of the other countries you might come from is large. The UK is in 14th place. The USA scored 61.6, a C+, which places it 33rd. Austria ranked lowest among European countries, at 44th.

Read Also: Investing in the Netherlands as an Expat in 2026

What the Three Pillars Do for You

The Dutch system has three tiers. The first is AOW (the state pension), which people build up by living or working in the Netherlands. You get 2% of the full amount for each year insured, up to 50 years before AOW age. A single person on a full AOW gets €1,662.16 gross a month since 1 July.

The second tier is your workplace pension (the payslip deduction). Most employees are in a fund by law, through their sector or employer. The final tier is what you put away on your own. The index rewards the Netherlands because the first two tiers reach almost everyone and are well funded.

The AOW age will remain at 67 in 2026 and 2027. From 2028 it will rise to 67 years and 3 months.

A Rebuild in the Middle of a Winning Streak

The best outcome was reached in the middle of the biggest pension reform in Dutch history. Under the Wet toekomst pensioenen, all funds must switch from a promised benefit to a personal pension that rises and falls with the markets. A letter from the minister to the House of Representatives in July said 42 funds had made the change, covering just over 10 million participants, 55% of those affected. Another 98 funds must switch by 1 January 2028.

The biggest wave is next. ABP, the fund for government and education staff, and PME, the fund for the metal and technology sector, both switch on 1 January 2027. Last week, both funds reported funding ratios of above 130 percent. PME says its retirees can expect a 12.6 percent increase in 2027 if the economy and interest rates stay stable.

Marc Heemskerk of Marsh, which runs the index, said the move “isn’t about abandoning what works.”

Dutch pension system rules change often, and you usually won’t notice until a letter arrives. Sign up to our newsletter to learn about the change before the letter arrives.

What Changes on Your Payslip in January

If your employer’s fund switches on 1 January 2027, you’ll receive a letter for the first time, stating your personal pension capital. The way that capital grows also changes: younger workers will see more growth and risk, and older workers will see less.

Three things are worth doing now:

• Log in to mijnpensioenoverzicht.nl with your DigiD to see your AOW years and the pension you have built up in every fund, including from earlier jobs in the Netherlands.
• Does your fund switch in 2027 or 2028? Check your fund’s website to be sure.
• Have you worked in several countries? An adviser specializing in expat pensions (for example, Expat Pension Holland) can map what you’ll receive from where.

Does Any of This Count if You Leave?

Yes, your AOW years are always counted and paid from your AOW age, even if you are living abroad. The pension you have earned through your Dutch pension fund system remains in that fund until you retire, no matter where you are. In some cases, you can move it to a scheme in another country, but only under certain conditions, so look into that before you leave the Netherlands.