The recommendation by the Dutch Authority for the Financial Markets (AFM) urging people in the Netherlands to invest more for their pensions has been endorsed by Mary Pieterse-Bloem, Professor of Financial Markets at Erasmus School of Economics. She describes the proposal as ‘a good thing’ and notes that the traditional Dutch preference for saving limits long-term returns.
According to Pieterse-Bloem, investing structurally delivers higher returns than saving, partly due to the compound interest effect. ‘The Dutch like to keep a buffer, but those aiming to build wealth over the long term can achieve better results through investing,’ she says.
The professor also expects that European regulations around investing may be relaxed to encourage investment. She argues for less stringent wording in risk warnings on investment products. ‘The current emphasis on potential losses is discouraging. A general statement that investing involves risks should be sufficient.’
At the same time, Pieterse-Bloem stresses that investing can be done with relatively limited risks, for example through diversified portfolios or professional asset management. Proper guidance remains essential, particularly as many people in the Netherlands indicate they lack sufficient knowledge to start investing.
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Read this article published in the Dutch newspaper Trouw on 4 May. For more information, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl, mobile +31 6 53 641 846.
