Company savings schemes less popular

27/04/2007 15:00

Employees deposited 1.1 billion euro in company savings schemes accounts in 2006. This is 0.3 billion euro less than in 2005. The numbers of employees savings accounts also decreased. The total amount on these accounts was 2.7 billion euro at the end of last year, according to figures from Statistics Netherlands.

Less deposited

Employees deposited 1.1 billion euro in company savings schemes accounts last year. This is significantly less than in the preceding years. In the period 2003-2005 the annual amount deposited was about 1.4 billion euro. The maximum amount employees are allowed to save did not change in 2006. This has been 613 euro per year since 2003.

The fall in deposits may be connected with the start of the life course regulation in 2006. It is known that a number of participants in this new regulation previously participated in the company savings scheme. Employees are not permitted to take part in both schemes at the same time.

Little money released, few accounts unfrozen

In 2006, 0.3 billion euro was released from employee savings accounts as a result of the end of the regular 4 year term. In addition, 0.4 billion euro was withdrawn from unfrozen accounts. These amounts are considerably smaller than in previous years. The reason for this is that a change in the law in 2005 made it possible to withdraw savings earlier than at the end previously agreed term. Employees subsequently withdrew half of their total savings in that year.

The total amount released in unblocked accounts in 2006 was smaller than the amount deposited in the savings accounts. This pushed up the total amount in the savings accounts by 22 percent, to 2.7 billion euro.

Number of accounts continues to fall

Just as in the preceding four years, the number of company savings accounts decreased in 2006. In 2002 there were 4.1 million accounts, four years later this was down to 3.4 million.