Regulator sees room to improve survivor's pension information

The AFM, the Dutch Authority for the Financial Markets, says pension providers pay a lot of attention to the survivor's pension (nabestaandenpensioen), but could still improve how they provide information. The findings are in an AFM report on the survivor's pension.

A survivor's pension protects surviving relatives, at least in part, against an unexpected drop in income when a member dies. The AFM says the loss of a loved one often brings a period of practical arrangements, along with the loss of income.

According to the AFM, clear information and insight into the choices available during different life events give members something to hold on to and options to act on. It says this prevents disappointment and missing out on income at the moment it matters.

The report uses personas, fictional example people, to explain common situations in a way readers can recognise.

AFM research found that information provision falls short at all seven pension providers examined. Members are often unknowingly and unintentionally uninsured for survivor's pension, the regulator says, because the rules are complicated and not clearly explained.

The AFM calls on the sector to improve the information it gives to members. Providers should "tell survivors how much pension they will get, when they will get it and how it will change over time", it says.