The average funding ratio of funds again came out in July at 97 percent, consulting firm Aon Hewitt reported Monday.
The coverage ratio is the ratio between the assets and liabilities of pension funds. The percentage shows the extent to which a fund is able to now and in the future to pay out pensions.
The so-called policy coverage, the average funding ratios of the last twelve months, remained at 99 percent in July stabbing. Since the current funding level remains low on the policy coverage period will fall further.
These percentages are well below the required level of over 104 percent. At rates below, there is a funding shortfall. The policy coverage end of 2016 determines whether the funds next year should reduce pensions.
Korten
According to Aon Hewitt it is increasingly likely that should curtail pension in 2017 on the benefits.
the company expects that many retirees will feel the effects in their pockets. It concerns the pensions of 6.5 million Dutch.
Interest
The funds suffer from falling interest rates. Interest rates for long maturities declined further in July. By keeping a low-interest funds have relatively more cash to meet their obligations.
The funds do have more earned on their investments in July. The total investment was in that month, about 3 percent more valuable.
It went better with the stock markets in all regions. And the fall in share prices since the referendum on the Brexit according to Aon Hewitt “now fully corrected”
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