How secure is your pension?

Your pension is subject to risks

You are involved with your pension throughout your life. During your working life, you build up pension. After that, you receive pension benefits. In total, this may cover a period of up to 80 years, during which much can change. There are also more risks. As a result, our financial position may change, and therefore your pension as well.

People are living longer on average
Our pension fund aims to be prepared for risks that could affect your pension. This has not always gone well. For example, people are living longer on average. This means we have to pay pensions for a longer period. Life expectancy has increased more rapidly in recent years than we expected. We therefore need to hold more funds than we originally calculated.

Interest rates can affect your pension
Pension funds must estimate how much money they need to be able to pay all pensions in the future. If interest rates are low, we need to hold more funds to meet all those pension payments.

Investments may underperform
You pay contributions towards your pension. We invest this money so that your pension can grow in value over time. However, investing also involves risk. That is why we choose a mix of different types of investments. This helps to reduce risk.

In our policy, we pay close attention to risks
There are additional risks. Our pension fund makes every effort to protect your pension against these. You can read more about our risk management in our annual reports in layer 3.

We measure our financial position using the ‘policy funding ratio’
Decisions about your contributions and any increase in your pension depend on our financial position. Each month, we review our funding ratio. We measure the average funding ratio over the past 12 months. This is called the policy funding ratio. This ratio must not be too low. If it falls below 100%, we are also not allowed to cooperate in the transfer of your pension value.

You can read more about our financial position and the policy funding ratio in our news.

Indexation

Each year the pension fund tries to increase your accrued pension, also referred to as indexation. The purpose of indexation is to keep the value of your pension in line with the increase in negotiated wages or prices, if higher. Your pension will only be increased if the pension fund’s financial situation is sufficient. The board annually decides whether indexation can be granted.

You work for Avery Dennison
The aim is an indexation of the pension entitlements for active participants that equals the development of the negotiated wages at the employer, or - if higher - the growth of the derivative consumer price index.

You do not work for Avery Dennison anymore
The aim is an indexation of the pension entitlements for past participants and pensioners that equals the growth of the derivative consumer price index.

If the fund's financial situation permits, the Board may decide to increase pensions.

Over the last 5 years the pensions have been adjusted as follows
The table below shows the increases that we have implemented in the last 5 years. It also shows whether an increase in prices has been compensated by an increase in your pension. As of 1 January 2026, the pension for active participants who are still accruing pension benefits has been increased by 4.41%. The pensions of retirees and former participants who are no longer accruing pension benefits have been increased by 2,65%.

*Source: Central Statistics Office in the Netherlands, consumer price index, October to October

Over the past few years our financial situation has not been stable enough to raise your pension yearly
It is uncertain if we will be able to raise you pension yearly in the future. Your pension has not been curtailed over the past few years and we do not expect that this will be necessary during the coming years. More information on this subject is available at indexation (pdf).

Also read this information
You will find all the rules in our pension regulations in layer 3. You will also read the applicable provisions for if you are no longer working with us or retire.

This is what we do in case of a shortfall

In the event of a shortfall, we will take one or several of the following measures, if necessary:

• Adjustment of our investment policy
• Adjustment of the pensions contributions
• Ask the employer for a extra contribution
• Reducing the pensions. We only do this as a last resort

Also read this information
You will find all the rules in our pension regulations in layer 3.
You will also read the applicable provisions for if you are no longer working with us or retire.