Gert jan sikking
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Pension Funds and Ageing Society Pensions, housing & long term care envisioning the future………. London, 10 November 2011 Gert-Jan Sikking, Innovation PGGM
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TBLI CONFERENCE™ EUROPE 2011- London - United Kingdom TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.
Transcript of Gert jan sikking
Pension Funds and Ageing Society
Pensions, housing & long term care
envisioning the future……….
London, 10 November 2011Gert-Jan Sikking, Innovation PGGM
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• Cooperative: 560.000 members• Originates from (19) pension schemes in health care and
social services sectors (founded 1969)• 6 pension funds as clients• Pension service provider (not the fund!): 2.3 mln. participants,
€100 bln AUM• No 2 in Netherlands, No 3 in Europe
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Dutch Pension SystemThree pillar model
Private life insurance/savings arrangements funding
Supplementary (occupational) pensions(supplements state pension to approx. 70% of salary)
funding
State pensions€ 18,000 (couples)€ 13,100 (singles)
pay-as-you-go
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Trends: people are getting older
Source: PGGM
Men
Women
Men, old trend
Women, old trend
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Trends: an aging society
Sorce: CBS
1950 2008 2050
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Societies in Transformation
2010 2030 2050
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Trends: increase ageing-related public spending
Increase from 12.4% to 20.3% of public spending
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Larger slice of personal income to healthcare and pensions
2011: Personal income € 30.000
2031: Personal income € 30.000
• AOW-premium: € 5.500
• AWBZ: € 3.600
• Pension: € 2.200
• Health insurance € 100 p.m.
• Taxes € 800 (= paid by employer)
• Total of 44% of personal income to healthcare and pensions
• AOW-premium: € 9.000
• AWBZ: € 6.000
• Pension: € 2.200
• Health insurance € 175 p.m.
• Total of 64% of personal income to healthcare and pensions
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Healthcare labor demand larger than supply (Netherlands untill 2025)
Total labor supply
Labor demandHealthcare
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Pensions, care and housing have similar ‘careers’
AGE →AGE → 18-30 30-55 55-65 65-75 >75
PensionsSaving
(related to income) Withdrawal
Health status
HealthyMinor
complaintsLimite
d
HousingSolo/Duo
Family Empty nestModi-fied
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lifecycle
Flexible capital appreciation over the life cycle
Pension, capital, income
Human Capital
Healthcare and wellbeing
Housing
Dom
ains
Flex
ible
cap
ital a
ppre
ciati
on o
ver
dom
ains
Education
Pension capital inown house
Time for taking care forchildren and parents
Use value of house for health care costs
Vitality
Bron: Martin van Rijn, Wouter Koelewijn en Niels Kortleve en (2010), ‘Naar een bredere kijk op pensioen’, ESB 95(4598), 26 november 2010
Flexibel pension: over life cycle and over domains
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OECD: Transforming Pensions and Healthcare
Source: concluding slide of Juan Yermo, OECD, “Transforming Pensions and Healthcare in a Rapidly Ageing World: Opportunities and Collaborative Strategies “
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Innovation projects around New Old Age
• Invest in housing with elderly care
• “Health Care Miles”– Non-monetary currency to support informal care
• Health care saving– Similar as Pension saving, but different payout
• Reverse mortgage products / sale-lease-back– Use value of house to make adjustments in house and
finance required care
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Conclusion
• We want to help people to realize a valuable and worthy future
• Separate domains: solutions within domains are suboptimal for citizens
• More flexibility needed over life cycle and between domains
• PGGM is making steps in integrating domains
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Movie New Old Age
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