Expected State Pension retirement age 68 69 70 71 CBS2019 2037 2051 Unknown Unknown AG2020 2042 2058 2075 2095 Table 7.6 Expected years in which the State Pension retirement age will have risen by a full year according to the latest CBS and AG projections Raising the Standard retirement age The raising of the standard retirement age (in one-year steps) in the second pillar is based on the same formula as for the State Pension retirement age. By law however, expected increases in life expectance are to be anticipated sooner: it is to be based on the remaining life expectancy of a 65-year-old that is expected to occur ten years after the calendar year of the adjustment. An adjustment to the standard retirement age must be published at least one year before it is implemented. For instance, an adjustment of the standard retirement age in 2022 must be published before January 1st, 2021. This will be based on the remaining life expectancy of a 65-year-old in 2032. The mitigation of the link to life expectancy introduced in the Pensions agreement means that the standard retirement age will only reach 69 in about 25 years’ time. 7.6 Effects on provisions To plot the effects of Projections Life Table AG2020 on the technical provisions of pension portfolios six fictitious example funds have been constructed. Three of the funds have male participants and three have female participants. For both sexes a young, an old and an average fund has been constructed. An additional model portfolio was designed to assess the impact om pension premiums. See Appendix B for a description of the model portfolios. Besides an old age pension (OAP) the example funds contain a deferred survivor’s pension (SP) and a survivor’s pension in payment. For male portfolios spouses receiving survivor’s benefits are assumed to be females. For female portfolios the opposite applies. The benefits used are a retirement benefit commencing at age 65 and an “undetermined partner” type survivor’s benefit with a partner frequency of 100%. A fixed age gap of 3 years is assumed between male and female partners, the male partner being assumed older than the female. The model portfolios have a weighted (by provision) average age of 45 (young), 55 (average) and 65 (old). The effects are shown for interest rates 3 and 1%, so that the effects can be compared to the previous publication (AG2018). Projections Life Table AG2020 Results 31
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