3,0%
Investment return
Investment return means how much profit or loss you made with money you invested.
Investment policy
SSPF’s financial position: stable and future-proof
ANALYSIS
SSPF achieved a positive return in 2024 and continues to maintain a strong financial foundation. Eveline Smeets, Head of Actuarial Affairs at Shell Pensioenbureau Nederland, explains.
At a glance
SSPF in numbers
€12m
Pension contributions
Money put in for later so that pensions are built up.
€995m
Pension benefits
The total paid out to people who have retired.
129%
Funding ratio
Shows whether there is enough money to pay everyone's pensions.
€27,2bn
Assets under management
All capitol the pension fund holds and manages in total.
€21bn
Pension liabilities
The amount the pension fund has to pay out to all members in the future.
3,1%
Pension increase from February 2025 onwards
3.1% (actives: 1.65%)
How did SSPF perform on returns and the funding ratio?
“We achieved a positive investment return of 3.0%,” Eveline explains. “Our funding ratio stood at 129% at year-end. That’s slightly lower than the previous year (134%), mainly because we reserved for a 3.1% pension increase as of February 2025.”
Why is SSPF reducing investment risk?
“Our fund has consciously reduced its exposure to riskier investments in recent years, because we’re in a strong position. At this stage, there’s no need to take additional risks,” Eveline says. “That will change under the new pension scheme, where the level of investment risk will depend more on each participant’s age and personal situation.”
“Our fund has deliberately reduced risky investments in recent years because we are well positioned. Taking on extra risk is not necessary now”
Will pensions increase again in 2025?
“Yes. As of 1 February 2025, we will increase pensions by 3.1% for retirees and former participants — equal to the inflation rate for 2024. Active employees will receive a 1.65% increase, based on the average inflation over the past two years.”
How does interest rate movement affect SSPF’s financial position?
“Interest rates definitely have an impact,” Eveline says. “Higher rates reduce the value of our bond holdings, but they also lower the cost of future pension payments. Thanks to our large bond portfolio, we’ve become less sensitive to interest rate fluctuations. That is one of the reasons why our financial position remained stable throughout 2024.”
About Eveline Smeets
After completing her degree in Econometrics at the University of Groningen, Eveline Smeets began her career at consulting firm Towers Perrin, later known as Towers Watson. In 2016, she joined Shell, where she serves as Head of Actuarial Affairs at Shell Pensioenbureau Nederland. In 2022, she was appointed Executive Board Member of Shell's other pension fund, SNPS.