Employees are more and more in charge of their pension and more aware of the necessity to develop their own responsibility for this. At the same time employers are giving individuals more freedom of choice about what their pensions will look like: in many pension plans exchange options in collective plans and choices with regard to the commencing date and the height of the pension benefit are becoming an option. In addition, the increasing flexibilisation of labour and the need to create a good pension scheme for the self-employed, too,  lead to more attention the individual and his or her pension. Individual pension schemes should therefore be developed in such a way so as to become more user-friendly for individuals than in the traditional contribution schemes or annuity products that are available now.
That is why managing individual pension risks will be placed in the limelight at this PensionSummit.
 
Participants are confronted with a shift in pension risks from employer to employee. The transition from final pay to indexed career average, conditionality of the inflation correction, introduction of employee contribution, and contribution maximisation in combination with the reduction of the employer’s obligation to pay supplements contribute to the need for the employee to be watchful of his or her pension situation. In addition, we see the development of individual pension schemes, life course and a growing need to involve other capital components, too, in the realisation of future income provisions. With these solutions the planning with regard to the deposit, height and composition of capital development and future retirement pay lies with the individual. At the same time managing the risks that go with the individual’s own pension is often clearly underestimated, with all its consequences.

Precisely because it is so difficult to have a good view of one’s pension, but also because one’s attention in everyday life tends to focus on other things, many employees and self-employed people do not have sufficient insight into their own pension situation and risks. Pension funds are beginning to anticipate on this by investing in the communication about the rights that have been built up. There are, however, plenty of new opportunities for pension providers to take up a position as long-term financial planning partners of participants, early leavers and pensioners. The aim is to take away the pension consumer’s concerns and to provide insight and overview. This can be done by offering pension solutions that take the risk management off the consumer’s hands and give a complete overview of the various sources of capital development and risks. To ensure that freedom of choice does not turn to choice causing stress, clear defaults need to be set for those consumers that leave the choices completely in the hands of the familiar pension provider. New technological developments and internet make it possible to offer risk management, financial planning and communication more than ever as an interactive awareness and steering process in respect of financial planning. The sector is challenged to make the right choices in the design of new schemes and to offer its products in a cost-efficient manner.

We are pleased with speakers’ enthusiastic response to this subject matter. In line with the tradition of the PensionSummit, experts from abroad and from the Netherlands will share with us their ideas on freedom of choice and transparency in pension schemes. We invite you to participate actively in the programme, both during the Q&As and the panels. In the panels policy makers and representatives of the self-employed will engage in debate with you as well as with each other. In the concluding panel experts with practical experience and an academic background will put the day in perspective with you.

Jeroen M. Tielman