Normally, money loses a little of its value every year. In a few years' time, you will be able to buy less with the same amount of money than you can now. This is called “inflation”. That is why we try to ensure that pensions keep pace with price increases.
Every year on 31 October, the board reviews the financial situation. The pension fund then looks at the coverage ratio. The coverage ratio indicates the ratio between the assets (the total assets managed by the pension fund) and the liabilities (the total amount of pensions that the pension fund must pay out now and in the future). The pension fund is also legally required to maintain a reserve.
If there is surplus capital (i.e. more than is required for the mandatory reserve), the board may decide to use all or part of the money to increase the pension you have accrued or are already receiving.
In recent years, Pensioenfonds Witteveen+Bos has been able to increase pensions as follows:
2025: 1.3% (prices rose by 3.1%)
2024: 5.3% (prices fell by 0.4%)
2023: 5% (prices rose by 14.3%)
2022: 0% (prices rose by 5.7%)
2021: 0% (prices rose by 1.0%)
2020: 0% (prices rose by 2.7%)
2019: 0% (prices rose by 2.0%)
2018: 0% (prices rose by 1.3%)
2017: 0% (prices rose by 1.0%)
2016: 0% (prices rose by 0.7%)
An increase of the pensions is not guaranteed
We do not set aside funds for an increase. We pay for an increase from the general reserve. The board's decision depends, among other things, on the financial position of the pension fund and the outlook at that time. We cannot make any promises about granting increases in the future.
If pensions do not keep pace with price increases in a given year, or do not do so fully, the “missed” increase may be made up for later.
Read more: how do we determine how much we can increase pensions? >>
We look at the policy coverage ratio (the average coverage ratio in the previous 12 months) and the increase in prices.
From 2023, we will increase pensions based on the following rules:
- Is the policy coverage ratio below 110%? Then pensions will not be increased.
- Is the policy coverage ratio 110% or more, but lower than the limit for future-proof indexation? Then we calculate according to the rules for future-proof indexation what percentage of the aspired indexation can be granted.
- If the policy coverage ratio exceeds the limit for future-proof indexation, pensions can be fully indexed using the indexation measure.
Decision on indexation
In January, we calculate the indexation rate according to our rules and the law.
- We take into acount:
- the policy coverage ratio on 31 October of the previous year.
- Price inflation according to Consumer Price Index all households from October to October.
- the requirements of future-proof indexing.
- In January, the board will finally decide whether pensions will be increased. And by how much.
- If pensions are increased, this will take effect on 1 January.
- The percentage increase is the same for all participants.
- If you are already retired, you will receive a higher benefit from January.
- If you are not yet retired, your pension rights will increase.