1. 1 Building pensions for the future What the Dutch can learn from other countries? Johan van Egmond European Pensions Netherlands Summit: Light at the end of the tunnel 11 November 2009

2. 2 Agenda 1.Company pensions in crisis 2.Dealing with DB i. Risk-sharing – learning from the Dutch ii. De-risking – learning from the UK iii. Total Retirement Outsourcing – learning from the US 3.Dealing with DC i. Contributions – learning from the Australians ii. Investment behaviour – learning from the Germans iii. Education and communication – learning from the UK

3. 3 Company pensions in crisis DB as well as DC plans face severe times Impact DB liabilities on balance sheets (IFRS accounting) Coverage ratios DB plans below requirements DC contributions (too) low Asset growth in DC plans insufficient Multinational organization faced with country differences, which poses additional challenges

4. 4 Liabilities Assets Crisis Underfunded pension funds in the US

5. 5 Crisis Recovery times 410(k) account balances

6. 6 Contributions Pay outs Investment Policy Dealing with DB Risk-sharing: learning from the Dutch

7. 7 Insurance Company Sponsoring corporation Pension Fund Active Pension Fund Members Passive Pension Fund Members Buy-in Insurance Company Sponsoring corporation Pension Fund Active Pension Fund Members Retired Pension Fund Members Buy-out Risks Deferred Pension Fund Members Retired Pension Fund Members Benefits Contribution Buy-out price Contribution Buy in price Dealing with DB De-risking: learning from the UK

8. 8 Dealing with DB Totel Retirement Outsourcing: Learning from the US

9. 9 Dealing with DC Contributions

10. 10 Superannuation: learning from the Australian

11. 11 Dealing with DC Investment behaviour: learning from the Germans

12. 12 Life cycle strategies / Hedging of risks: learning from DB Life Cycle Equities Money Market

13. 13 Dealing with DC Education: learning from the UK ‘Good money sense needs to be as much part of people’s lives in the twenty first century as healthy eating and keeping fit.’ ‘The UK requires a Money Guidance service that is ‘impartial and on the user’s side; available to all; preventative rather than just for those in crisis; supportive and coaching in style; and delivered in an environment not linked directly to a product sale.’ From: Governmental working group Generic Financial Advice, chaired by Otto Thoresen (CEO AEGON UK), March 2008

14. 14 Remove investment related risk Remove actuarial risk Index Based Mortality Swaps Full Buy Out Open DB Plan Buy In Full Longevity Risk Transfer Cash Flow Matching Duration Overlays Inflation Overlays Summary: dealing with DB Find the appropriate solutions

15. 15 Summary: dealing with DB Planning your way out of the financial crisis

16. 16 Summary: dealing with DC Find the appropriate solutions Building pensions for the future Making “promises” you can keep …save moreauto enrolment, behavourial finance …invest betterlife cycles, guarantees …plan dissavings phaseallignment saving and dissaving …understandcommunication and education

17. 17 AEGON Global Pensions Whitepapers: “Planning your way out of the financial crisis” (2009) “Making promises you can keep – Building pensions for the future” (2009) www.aegonglobalpensions.com Global Pensions Solutions: johan.vanegmond@aegon.com

18. 18 Thank you This presentation contains general information only and does not constitute a solicitation or offer. No rights can be derived from this presentation. Please be advised that any fees, performance and/or cost indications in this presentation are for information purposes only. AEGON Global Pensions, its members and any of their affiliates or employees do not guarantee, warrant or represent the accuracy or completeness of the information contained in this presentation.