## Self-Employment and Support for the Dutch Pension Reform

_IMF Working Papers, March 19, 2019_

## Source details

**Canonical URL:** [Self-Employment and Support for the Dutch Pension Reform](https://www.imf.org/en/publications/wp/issues/2019/03/19/self-employment-and-support-for-the-dutch-pension-reform-46663)

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## Bibliographic details
- Authors: Izabela Karpowicz
- Published: March 19, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498302807.001

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### Summary and context
- The Netherlands’ pension system is characterized by high participation rates, adequate retirement income, strong capitalization and sustainability.
- Pressure points are arising due to population aging and untransparent intergenerational transfers inherent in the system.
- The Dutch pension system needs to adapt to the changing labor market landscape with an increasing share of workers in self-employment not covered by any pension arrangement.
- The government has proposed replacing collective defined-benefits schemes with personal accounts, and abolishing uniform premia and constant accrual rates.
- The micro-data analysis shows that allowing greater risk-taking and freedom of choice in managing pension savings could crowd self-employed into pension schemes.

### Key findings from the micro-data analysis
- Allowing greater risk-taking in pension saving management may increase take-up of pension schemes among self-employed workers.
- Increasing freedom of choice in how pension savings are managed has the potential to attract self-employed individuals who are currently without any pension arrangement.

### Challenges identified
- Population aging is creating pressure on the current pension system.
- Intergenerational transfers within the system are described as untransparent.
- A growing share of workers in self-employment are not covered by any pension arrangement, requiring policy adaptation.

### Policy proposals and implications
- Replace collective defined-benefits schemes with personal accounts.
- Abolish uniform premia.
- Abolish constant accrual rates.
- Expand options for risk-taking and individual choice in pension management to potentially increase coverage among self-employed.

### Subject classifications and keywords
- Subject: Expenditure, Income, Labor, National accounts, Pension reform, Pension spending, Pensions, Self-employment
- Keywords: Europe, Global, gross income, Income, income stream, investment risk, occupational pension, pension, pension contract, pension reform, Pension spending, Pensions, pillar pension schemes, result, risk, risk attitude, risk sharing, self-employment, self-employment status, WP

### Publication identifiers
- Pages: 26
- Volume: 2019
- Issue: 064
- DOI: https://doi.org/10.5089/9781498302807.001
- Series: Working Paper No. 2019/064
- Stock No: WPIEA2019064
- ISBN: 9781498302807
- ISSN: 1018-5941
- Author: Izabela Karpowicz
- Publication date: March 19, 2019

*Source: IMF Working Paper "Self-Employment and Support for the Dutch Pension Reform", Working Paper No. 2019/064.*

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2019/03/19/self-employment-and-support-for-the-dutch-pension-reform-46663_