Various factors affect our financial situation, with the coverage ratio serving as a key indicator. This reflects the relationship between assets and liabilities.
In the dashboard, you will find ABP’s financial snapshot as of March 31, 2024:
0,4 % higher than in February 2024
0,1% higher than in February 2024
The current coverage ratio shows whether ABP has sufficient funds to meet present and future pension liabilities. A 100% coverage ratio means ABP has precisely €100 in assets for every €100 in pension liabilities. This ratio guides decisions on potential collective value transfers.
The policy coverage ratio is the 12-month rolling average of the coverage ratios. This guides decisions on individual value transfers and pension indexation.
Higher than 110 %
The policy coverage ratio is high enough for indexation.
Lower than 110 %
The policy coverage ratio is not high enough for indexation.
Increase of €12 bln compared to February 2024.
Assets are ABP’s available funds.
Increase of €9 bln compared to February 2024
Liabilities are the pensions we must pay now and in the future.
Effect on coverage ratio: 2.6 pt.
Returns affect assets. Higher returns lead to a more significant increase in assets. Negative returns lead to a decrease in available assets.
Effect on coverage ratio: - 2.4 pt.
The actuarial interest rate determines the assets we need to accommodate our future pension liabilities.
Percentage of (salary -/- franchise)
You pay 8.10%. Your employer pays 18.9%.
Average life expectancy
For life expectancy, we consider ABP participants who are currently 65 years old.
For 2024
Total maximum missed indexation untill 2023: 20%
