'Will I still have a pension by the time I retire?' Six questions to Lisa Brüggen, new Endowed Professor of Retirement Communications and Choice Guidance

'Yes. It is true that our individual retirement incomes may be lower than estimated earlier, but because of the way the Dutch pension system is set up, none of us can run out of pension capital as we grow older. The My Pension Statement website gives a quick and easy estimate of our individual future pension amounts. In my research, I ascertain what types of communication are effective in giving people better information and a clearer and fuller understanding of their pension situation.'

'The nice thing in the Netherlands is that most workers actually build up supplementary pensions. This is arranged automatically when people enter into employment. In my native country, Germany, that is not the case. As a result, people there have much lower pensions than in the Netherlands. Self-employed people will of course have to make their own arrangements. Do you want to know more about how to build up pension? Take a look at useful websites, for instance, that of Nibud (https://www.nibud.nl/onderwerpen/pensioen/, in Dutch), the Dutch government, or your pension fund, or contact your employer.'

'Unfortunately, no. Take a look at Mijn pensioenoverzicht for the estimate of how much pension you can expect and check whether you think that will be enough for you to retire comfortably. Some pension schemes only build up a minimum pension. And if you decide to work fewer hours for a while, stop working, work for an employer that does not have a pension scheme, or if you are self-employed, your pension may be lower than what you may later need. If you find that out in time, you have plenty of options to do something about it! You could, for example, put more money into your pension scheme, save money, pay off your mortgage, cash in on the excess value of your home, buy your own pension product, work more hours, or retire later. More information is available at the Money Wise Platform of the Dutch Ministry of Finance. The earlier you start, the better.

But what is enough’? That’s an interesting question. As part of the remit of my chair, we will investigate the factors that influence people’s sense of financial well-being and how that relates to what they actually need. In the past, the rule of thumb was that we could sustain the lifestyle we’d grown accustomed to if our retirement incomes were 70% of our final salaries. But that of course very much depends on many factors: Do you live alone or do you have a large family to support? Have you paid off your mortgage or money in the bank? Are you used to a frugal lifestyle or do you want to make a trip around the world?'

'Together with your employer, you may, for example, choose to retire a few years either before or after you reach state-pension age, or part-time. You can also often change the timing of your retirement payments. For example, you can choose to have more retirement income paid out at the beginning of your retirement or defer higher payment to a later moment.

My team and I will investigate how we can best help people make choices. Because the choices we make about our retirement are irreversible, and they determine our retirement income for the rest of our lives. Will an online tool helping people to make these impactful choices really be enough? Or: what kind of personal guidance will help people make a choice that best fits their preferences and needs?'

'I hear this often, but I doubt whether most people would manage to outperform the Dutch pension funds in terms of the returns they make. I want to delve further into the reasons why some people feel the need to invest their own retirement money. What considerations are at the basis of this preference? A lack of knowledge about pension arrangements? A lack of trust? What could help explain, in the context of retirement communication, how our pension contributions are being invested? Or how our interests and concerns regarding, for example, sustainability are reflected in pension fund policies?'

'Yes and no. If pensions are increased, this will happen automatically, but whether pensions can be increased depends on the returns achieved. Your pension fund or insurer is required to keep you up to date, so it would be wise to carefully read their mail to stay informed.

Earlier research we did, however, has shown that many people don’t even open mail from their pension fund or insurer. Our next step is to study how pension providers can provide information in such a way that it is easier to understand and incentivizes people to take the time to digest it.'