Regulatory Alerts2023-06-29
Tax-facilitated accumulation of individual pension wealth in the third pillar
The Dutch Authority for the Financial Markets (AFM) analyzed CBS microdata to assess the uptake of tax-facilitated third-pillar pension products among Dutch workers. The study reveals that only 5% of employees and 11% of self-employed individuals made contributions in 2020, with usage significantly higher among older individuals, those with higher incomes, and those expecting lower future pension incomes. Despite potential tax benefits, participation remains limited due to factors such as low disposable income, desire for liquidity, complexity, and insufficient awareness of available tax space.
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