Pension funds profit from higher interest rates in the run-up to a new system

ABP faced challenges in Q3 due to rising interest rates and geopolitical tensions, leading to a decrease in assets to €542 billion. However, pension obligations fell more significantly to €411 billion, improving the coverage ratio from 126.9% to 132.2%. PME also saw an increase in its coverage ratio. Both funds will transition to a new pension system on January 1, which will eliminate the collective pension pot in favor of individual accounts. This change aims to link pension increases more closely to investment returns rather than the coverage ratio. If economic conditions remain stable, pensioners could see a 12.6% increase in 2027.