Dutch pension funds are often over-optimistic when estimating their future returns on investment, according to a letter sent to some 600 funds by the central bank, Nos tv reports.

In the letter, the central bank urges pension funds to improve their investment strategies. Some are showing ‘such serious shortcomings that they can undermine faith in the pensions sector’, the letter says.
Some 340 of the country’s pension funds got into difficulty because of the financial crisis and were forced to freeze payouts, increase premiums and adapt their investment strategy into order to restore their fortunes.