The strength of a pension fund's financial position can be assessed based on the funding ratio. In the Netherlands, many pension funds base their financial strategy on the nominal funding ratio, which is defined as the ratio between the fund's assets and the value of the pension entitlements of employees and former employees - that is, the pension liabilities. Our financial strategy is based on the real funding ratio, as this, unlike the nominal funding ratio, takes into account future indexations. If our real funding ratio is 100%, this means Progress is able to meet the existing pension liabilities and to increase pension entitlements in the future in line with price trends. As using the real funding ratio provides us with greater insight into our long-term financial position and our ability to apply indexations, we are committed to improving and stabilising our real funding ratio as much as possible.

In addition to our investment strategy and its results, our contribution and indexation policies also affect our real funding ratio. You will find more information about these subjects in the financial section of this website; for actual figures, please refer to the section entitled key figures (Kerncijfers), where you will also find the real and nominal funding ratios, among other information.