Project R-16526

Improving supplementary pension participation and accrual in the Netherlands: a comparative study of New Zealand, Sweden, the UK and the Netherlands on pension design and pension taxation in relation to the labor market (Research)

This research project investigates how pension design and pension taxation can improve pension participation and accrual in the Netherlands. In order to gain new insights, a comparative legal study across four countries (the Netherlands, New Zealand, Sweden, and the UK) will be conducted on pension design and pension taxation in relation to the labor market. Occupational and individual pension schemes play an important role in the Netherlands in providing an additional old-age income alongside the flat-rate statutory pension (AOW). The majority of the employees is obliged to participate in an occupational pension scheme. However, a significant part of the workforce still falls outside the scope of this 'quasi'-mandatory system. The majority of the self-employed workers, e.g., do not accrue occupational pension benefits. This coverage gap is becoming even more urgent due to labor market shifts, such as the rise of self-employment. Most self-employed workers without occupational pension benefits do not (sufficiently) compensate through individual pension savings, leading to a risk of inadequate income in old age. To address this, the project focuses on two main levers: (1) pension design (mainly focusing on regulations that may affect affiliation to supplementary pensions and the accrual of supplementary pension entitlements) and (2) pension taxation. By conducting a comparative analysis across four countries, the research seeks to identify new insights into how legislative changes can increase participation rates and contribute to the accrual of old-age income. The ultimate goal is to contribute to the development of a pension framework that adapts to modern labor market realities.

01 January 2025 - 31 December 2027