The Dutch government’s idea of making pension saving mandatory for all workers is feasible, two of the country’s top pensions experts have concluded – but they also warn that the devil will be in the detail of the scheme’s potential design.
In their study — Implementation Aspects of a Mandatory Pension System in the Netherlands — Casper van Ewijk, professor of economics and researcher at Network for Studies on Pensions, Ageing and Retirement (Netspar), and Erik Lutjens, professor of pensions law at Vrije Universiteit Amsterdam, said: “The paper finds that a pension mandate is feasible but important design choices have to be made”.
Systems with choice encouraged innovation and competition, but increased complexity and required more from participants, the pair wrote in the study published by Netspar on 6 August.
Were a single provider to be chosen to run the scheme, they said, this would reduce selection risks and may lower costs, but would weaken the incentives for innovation.
Under competition, however, they warned there might be “risk selection” — providers targeting lower-cost participants, and to avoid this, regulation such as risk equalisation would be needed.
“Flexibility is important for self-employed workers due to income volatility and heterogeneous preferences, yet it may put pressure on the arrangements for employees,” van Ewijk and Lutjens said.
As background to the political debate in the Netherlands about mandatory pensions, the academics cited the recent Interdepartmental Policy Review (IBO) “Pension Accrual in Balance”, which identified groups warranting special attention, such as the self-employed who accrued very little pension, and mentioned a mandatory pension requirement as a possible solution.
The 2026–2030 coalition agreement also addressed pensions for the self-employed, and the rapid introduction of the Self-Employed Act, requiring self-employed people to make pension arrangements, they said.
“A mandatory pension requirement could also offer a solution for employees who lack supplementary pensions or whose supplementary pensions are inadequate - situations referred to as ‘white spots’ and ‘grey spots’, respectively,” they added.
Summing up the implications for a potential mandatory pension system, van Ewijk and Lutjens said policymakers had to balance simplicity – for example, having just one provider – against choice, as both affected costs, innovation, and feasibility.
Effective enforcement, data sharing, and supervision were crucial for a functioning mandate, they noted, adding that there could be differentiation for self-employed workers, but this could create fairness concerns.
They also cautioned: “Gradual implementation and clear communication are needed to avoid economic disruption and maintain public support.”
