Netherlands Headed For Unprecedented Crisis: Millions Of Retirees Face Pensions Cuts Thanks To The ECB, by Tyler Durden

Zero and negative interest rates are catching up to European pensions. From Tyler Durden at zerohedge.com:

When one thinks of pensions crisis, the state of Illinois – with its woefully underfunded retirement system which issues bonds just to fund its existing pension benefits – usually comes to mind. Which is why it is surprising that the first state that may suffer substantial pension cuts is one that actually has one of the world’s best-funded, and most generous, pension systems.

According to the FT, millions of Dutch pensioners are facing material cuts to their retirement income for the first time next year as the Dutch government scrambles to avert a crisis to the country’s €1.6 trillion pension system. And while a last minute intervention by the government may avoid significant cuts to pensions next year – and a revolt by trade unions –  if only temporarily, the world finds itself transfixed by the problems facing the Dutch retirement system as it provides an early indication of a wider global pensions funding shortfall, not to mention potential mass unrest once retirees across some of the world’s wealthiest nations suddenly finds themselves with facing haircuts to what they previously believed were unalterable retirement incomes.

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