By Sophie Smith
Source: European Pensions

The average funding ratio for Dutch pension funds increased from 114 per cent to 120 per cent in March, the highest level in more than 10 years, according to analysis from Aon.

The provider’s Pension Thermometer revealed that equities and commodities had also risen sharply over the past month, despite global tensions and uncertainty, which compensated for the decline in fixed income portfolios.

In addition to this, Aon flagged that interest rates rose sharply in March, with 30-year yields reaching 1 per cent, whilst liabilities fell by more than 5 per cent on average.

Major reforms to the Dutch pension system have recently been put forward in the Future Pensions Act, although Aon noted that these changes may seem less urgent in light of the improvements in policy funding ratios.

Despite this, the firm stated that it was “sensible” to maintain momentum and switch to the new system, warning that the current positioning is a snapshot amid “very volatile” markets and great uncertainties around global developments.

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