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Dutch Pension Overhaul: DB-to-DC Transition to Reshape European Bond and Derivatives Markets, With Transitional Yield Volatility and Bank Portfolio Effects from 2026

Published on: 11 September 2025

Published by a Law360 reporter
Legal News
Article summary

Morningstar DBRS, in a note to investors, indicated that although it does not anticipate ‘systemic’ dangers, the shift from defined benefit (DB) to defined contribution (DC) pensions could still generate a broader ripple across markets. The Netherlands is set to move from arrangements that guarantee retirees an income based on final or career‑average earnings to a model where both employees and employers make monthly contributions into a savings pot. This transition is expected to bring about a major change in Dutch pension funds’ investment approach—moving away from dependable long‑dated government bonds towards higher‑return equity markets. Morningstar DBRS characterised the reform as one of Europe’s most significant pension revamps...

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