Increased life expectancy

Each year, pension funds estimate their actuarial position, which entails calculating the balance between their assets and their pension payment obligations. One criterion used in this calculation is the length of time people will receive pension income; i.e., their life expectancy. Until now, this has been estimated based on previous years’ experience.
At beginning of 2022, the Ministry of Finance and Economic Affairs confirmed that henceforth, life expectancy estimates will be based both on previous years’ experience and on forecasts that take into account an aging population.

Pension funds have an adaptation period of two years to adopt the new calculation method. At the end of that period, all pension funds will be required to calculate their obligations using the new method.