BELGIUM - Development of Belgian second pillar pensions might stagnate even further under the new government, IPE has learnt today.
Industry experts are worried a new government dominated by leading Christian Democrat party will place too little emphasis on an already slowly-developing second pillar.
Frank Rummens, senior consultant at Brussels-based consultancy firm Pragma, told IPE today: "My personal view is that the government still is insufficiently aware of the need for a second pillar."
The Belgian Association of Pension Funds (BVPI) also told IPE today too large an emphasis on the first pillar might slow down the second pillar even more.
The Belgian second pillar currently consists mainly of insurance products with low returns, while corporate pension funds are only starting to grow now.
"We will probably evolve from a Liberal-dominated government to one in which the Christian democrats dominate, and they traditionally value the first pillar more," added Rummens, who recognises it is too early for any true assessment.
Negotiations between parties about the formation of the new government started today.