Possible significant pension increase on the way at ABP and PME due to rising coverage ratio

The pension funds ABP and PME have improved their financial status due to rising interest rates, increasing their coverage ratios above 130%. This strong position is beneficial as they prepare to transition to a new pension system. The ABP's coverage ratio rose from 126.9% to 132.2%, while PME's increased from 127.7% to 132.8%. Higher interest rates reduce the required assets for pension payouts, allowing for a potential pension increase of 12.6% in 2027. Both funds will switch to the new system on January 1, where participants will have individual pension pots, with varying risk levels based on age. Funds that have already transitioned are also performing well, largely due to positive stock market returns.