The average funding ratio of Dutch pension funds fell at the beginning of August from 102 to 98 percent. This threatens discounts at the end of 2019 and 2020, says research agency Aon on Thursday.
It is because of the negative stock market developments and substantial interest rate drops, says Aon in a new Pension Thermometer.
On average, funds with a coverage ratio of 98 percent actually have 2 percent too little in cash to pay in the future.
The agency calls it a fall in the coverage ratio below the "critical limit". The policy funding ratio is 106 percent, and the legally required minimum is 104.3 percent. A few funds are now below that limit.
The policy funding ratio is, incidentally, based on the average funding ratio of the past year, so that it will also be lower if the current position remains the same.
But, says Aon: "This means that potential discounts at the end of 2019 and 2020 will not be eliminated. Indeed, with both falling interest rates and blows on the stock markets, discounts will become an increasingly realistic scenario".