In march 2021, the indicative average coverage ratio of the Dutch pension funds increased from 104% to 108%. The combination of rising interest rates and stock prices have resulted in a decline in liabilities as well as extra capital. The increase in coverage ratio in February and March means that they are on the rise again after a period of sharp decline. This was found by Aon, an organization which monitors the daily average coverage ratio of pension funds.
The last time the average coverage ratio reached 108% was in February 2019. Only a year ago, in March 2020 – the start of the coronavirus restrictions in the Netherlands – the average coverage ratio reached an all-time low of 85%.