Nibud warns: People with a supplementary pension are seeing a decline in purchasing power
Despite all the nice words of the cabinet, purchasing power for most Dutch people will hardly improve in 2018. People with a supplementary pension will even see their purchasing power fall in 2018, sometimes by more than 1 percent. Only working people benefit slightly, according to purchasing power calculations of the NIBUD.
The improving economy has positive consequences for many wages, but also has an impact on prices. Because many prices of products and services are rising, you cannot necessarily do more with more money. Nibud therefore advises to remain alert to the balance between income and expenditure.
Almost all of the plans presented by the previous cabinet on Prinsjesdag will be implemented in 2018. The premium for health insurance has risen less than originally thought, and the deductible has not risen either.
Because inflation has risen more than expected, households have slightly less net money left over. Most of the plans from the coalition agreement, such as the reduction in income tax and the increase in VAT, will only take effect from 2019 and are not included in the purchasing power calculations for this year.
Pension hardly increases
Nibud sees that the average highest increase in purchasing power is for working couples with children. They not only benefit from the wage increases, but also from the increase in the child-related budget. This will increase for the second child by 79 euros per year.
For pensioners with a supplementary pension, this pension hardly increases. As a result, many pensioners experience a decline in purchasing power of 0,1 to 1,2 percent. Depending on the level of income, this is sometimes more than 50 euros per month.
And so the citizen is tricked and lied to by Rutte and his cabinet for the umpteenth time.
Did you expect anything different? With the elections all nice talk, but then all kinds of excuses. Whether you live in Belgium or the Netherlands. Everywhere the same
“As a result, many pensioners experience a decline in purchasing power of 0,1 to 1,2 percent. Depending on the level of income, this sometimes amounts to more than 50 euros per month.”
Effective calculation:
50 euros = 1,2% -> pension of 4.167 euros
50 euros = 0,1% -> pension of 50.000 euros
Even with 4.167 euros I would be very satisfied 🙂
I almost suspect that it means 50 euros per year. Both converted amounts can hardly be called a supplementary pension. It is roughly 4 to 50 times the AOW benefit to which it would supplement.
In this respect, 0,3 to 4,2 times the AOW amount seems much more likely.
And then they find it strange why so many pensioners voted for the PVV in Thailand, they are and remain liars and hypocrites in the hedge, but I don't think it will last with this cabinet.
Quite good, because in practice the PVV often votes like VVD, CDA or SGP. So it's best to label that as hypocrites while you're at it. 😉 You expect a protest or angry voice that the social structure should remain as it is / was on the SP.
About 15 years ago, I think, the government and the business community dug into the pension pots. Pension contributions were reduced because there was supposedly too high a reserve and employees could be fobbed off with a lower wage adjustment. In retrospect, there was a lack of vision because the funding ratios are now questionably low and no one has been getting a pension increase for years and people are more likely to be threatened with a reduction. It also threatens to drive a wedge in the solidarity between generations trapped in an archaic system. Voters en masse follow people who promise something in the short term, while the visionaries who think of the long term are always less popular.
I myself have little shrinkage. But I have always built up something extra because I didn't want my financial future to depend on the skills of others. Turns out to have been necessary because I don't think I've seen an increase since my retirement.
In fact, if you take the pension fund of the small metal industry, they have cut you by 6,5% in recent years. With all the price increases in recent years there has been a major decline.
Nice promises from Rutte now that things are getting better...... when things went a little less, we were immediately cut back on our pension.... not to mention grabbing (stealing) from the pension pots.
Scandalous !!!
People prefer to spend it on their own redundancy pay.
The fact that the economy is doing better says less and less about the position of employees and citizens. After all, turnover is increasing with fewer and fewer people, and profits are skimmed off by companies and funneled to safer places with the approval of our cabinet. Whatever profit remains is either paid extra to the EEC (1 billion less discount next year), or used to finance a profitable migrant and population displacement industry.
The ordinary Dutch citizen has it checked. At the same time, women who prefer part-time work are being demonized, working full-time is much more liberating and emancipated. In the meantime, it simply generates more money that can be skimmed off by the cabinet-never-enough.
Serfs used to work 3 out of 7 days a week for the Lord. Today we work 3 days out of 5 for the almighty state.
The VUT and rummaging in the pots in the past may not have been so handy…
But at least we still have a pension, that went a bit wrong in Brussels. 😉 The NOS writes:
“The European pension fund for MEPs is about to collapse. The fund has had large deficits for years, last year 270 million euros and this year 326 million. If it continues at this rate, the fund will be finished in 2024, because there will be no more money in cash by then.
In the past, parliamentarians have paid too little contribution for the pension they receive. The funding ratio has been far too low for years. In the Netherlands, pensions are cut if the funding ratio falls below 105 percent. Last year, the funding ratio of the European fund was 37 percent.
With a few exceptions, Dutch MEPs do not use their pension. Only former parliamentarians Ria Oomen (CDA) and Hans Blokland (SGP) receive money from the fund. The other Dutch parliamentarians already agreed in 1999 that they would not make use of the scheme. The VVD member (now 50Plus) Toine Manders refused to sign that statement at the time and also receives money from the pension fund.
For the members of parliament it is a luxury arrangement, because in the Netherlands they receive AOW, a supplementary pension and therefore also the European pension.”
https://nos.nl/artikel/2213486-europees-pensioenfonds-op-rand-van-de-afgrond.html
Clear article Rob, but I think I recently read that the presidency would pay money into the fund to make up the deficit. Generally, parliamentarians take good care of themselves.
Today in the Telegraph: https://www.telegraaf.nl/financieel/1578925/hoe-gaat-het-met-uw-pensioenfonds
I have not received a pension increase since 2007.
How much less purchasing power will that be in the meantime.
Indeed, no increase in the pension for years. Well, this month already down again at the abp. Sometimes you think shit, I worked hard for that for 51 years. enjoy your old age.