Longevity in the Netherlands is set to increase, with pension funds’ liabilities for men rising by 0.3% and for women by 0.9%, according to estimates from the Actuarial Society (AG).
The organisation said it based its estimate on a discount rate of 1%, adding that liabilities would increase by 0.1% and 0.6%, respectively, if the discount rate were 3%.
The AG, which produced its previous longevity report in 2014, said it expected girls born in 2016 to live for 93 years on average – an increase of six months.
Life expectancy for boys born this year remains unchanged at 90.1 years.
According to the AG, boys and girls born in 50 years’ time are likely to live 3-4 years longer.
If the Dutch government accepts the AG’s latest estimate, it will have to raise the official retirement age for the AOW state pension, as well as the target age for additional pensions.
The AOW age would have to increase to 67 and three months in 2022, and it would have to be set at 68 in 2027, rather than 2029.
Further into the future, the AG said it expected the official retirement age to rise to 69 by 2035, 70 by 2044 and 71 by 2053.
It suggested the target age for additional pensions should be increased to 68 by 2018 – one year earlier than recommended by Statistics Netherlands (CBS) last year.
The AG said the government now needed to make a decision on the ages for the AOW and additional pensions before the beginning of next year.