The number of pension funds in Belgium decreased by 10 in 2022, while the number of participants increased by 13%, according to the latest annual statistical summary prepared by Belgian regulator Financial Services and Markets Authority (FSMA).
At the end of 2022, there were 159 IORPs covered by Belgian law, down from 169 in 2021. However, 12 of the 159 pension funds are in liquidation or have been liquidated.
The number of IORP members will increase to 2.43 million in 2022. Membership in defined benefit plans fell to 11% from 14% in 2018. This represents 66% of pension funds, down from 71% in 2018.
The impact of the Ukraine war and the ensuing energy crisis led to poor stock market performance, with assets declining to 40.4 billion euros at the end of 2022, a 14% decrease compared to 2021.
Two-thirds of the sector’s total assets are held by just 13% of pension funds, and one-fifth of IORPs represent just 0.2% of total assets.
According to FSMA’s latest information, Belgium’s IORP invests just over three-quarters of its assets in mutual funds, while pension funds invest directly and indirectly 48% in bonds and 41% in equities. There is.
According to FSMA, Belgian pension funds lost 14.9% on investments in 2022. Industry association Pensio+ announced that investment performance recovered in the first half of 2023, with average returns reaching 4.5%.
The average coverage level in 2022 was 113%, but this was also lower compared to 2021 due to weaker equity performance and higher interest rates.
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