On 20 September, Theo Nijman, Professor of the Econometrics of Financial Markets, will say farewell to Tilburg University after nearly 40 years. In his farewell address, he will seek to demystify current misconceptions about the new pension act. According to Nijman, academia can provide an independent counterbalance to the heated debate on pensions.
The title of Theo Nijman’s speech on 20 September is ’The new pension’. This subject was deliberately chosen: Nijman was one of the founders of new pension legislation, the Future Pensions Act (WTP). He will also look ahead to what he will be doing when he retires, which includes remaining involved in university life on a part-time basis.
Misconceptions on the new legislation
During his valedictory address, Professor Nijman will share a number of important lessons gleaned from 20 years of intense discussions on pension reform. One of these lessons is the importance of clear communication. The new pension act can make the system more personalized, more transparent and more balanced, but inaccurate communication and skewed use of language has created quite a few misconceptions, Nijman says. Terms like ’casino pensions’, ’pension cuts’ and ’actuarial interest rate’ have continued to cause confusion in the public debate for many years and even delayed decision-making.
Nijman: ’Another misconception is that pension benefits were previously secure, but in the new system they will be "insecure". Whereas thanks to the new WTP, pension funds and pension contracts can actually be better aligned, for example with regard to the contributor’s age. While selected options are no longer imposed on other contributors. This makes the system more durable and fair’.
The role of academia
The independent, objectively verifiable counterbalance supplied by academia is essential for a rational debate around pensions, Nijman insists. In 2005 he was one of the initiators of Netspar, a knowledge-sharing network focusing on pensions and the aging population. Since its founding, Netspar has grown into one of the most influential sources of information about pensions. Netspar plays a significant part in supplying both the public discussion and private parties - social partners, pension funds, insurance companies and individual contributors - with accurate information on pension reform.
Intelligible concepts
Nijman: ’Other lessons learned from the years of public debate on pension reform are that choices are often based on untransparent pension models, while communication and trust are treated as secondary and only retrospectively. What if we turned that around, and started with a design for a pension system that was intelligible to the ordinary contributor and capable of widespread public support? We need to make available simple and intelligible options, like percentage adjustments for all contributors and guaranteed pension income, which would create more widespread support. Allowing for these options and explaining what the disadvantages are would make the system easier to comprehend and accept for everyone’.’
The independent, objectively verifiable counterbalance supplied by academia is essential for a rational debate around pensions
Theo Nijman
About Theo Nijman
Professor Theo Nijman (1957) is a prominent Dutch economist specialized in financial econometrics and pensions. He obtained his PhD in 1985 from Vrije Universiteit Amsterdam and was then appointed as associate professor at the Catholic College of Tilburg. In 1993 he was appointed as professor in the Econometrics of Financial Markets. Since 2013 he has also filled the post of professor of Pension Management and Risk Management, a research chair made possible by the Gak Institute. Nijman was a key figure in the founding and rollout of Netspar, an international knowledge-sharing network focusing on pensions. He also made significant contributions to the Future Pensions Act. In 2024 he received the golden oeuvre prize from PensioenPro for all’his contributions to the sector.
