Queen’s Speech: Retirment saving moves to Dutch model

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Radical plans to introduce giant Dutch-style “pooled” pension schemes which can potentially generate better retirement incomes were unveiled.

Such “collective schemes” will spread the risk between thousands of other members and could offer them greater stability over the eventual size of the pension they will end up with, while limiting costs to employers because of their economies of scale.

But some experts have warned that the Netherlands experience from the Netherlands shows that this type of pension also has drawbacks.

Unlike defined benefit schemes where you get a guaranteed level of retirement income, the “target pension” paid from pooled schemes may be adjusted downwards if investments do not pan out as expected.