The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as  indicated in The table below in the principal actuarial assumptions would have the following effects on the defined benefit  obligation per year-end: The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this  is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined  benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated  with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability  recognized within the statement of financial position. Aegon the Netherlands has a number of defined benefit plans and a small number of defined contribution plans. The defined benefit  plans are governed by the Management Board of Aegon the Netherlands. The Management Board has the full power and discretion to  administer the plan including developing investment policy and managing assets for the plans (although these assets do not qualify  as ‘plan assets’ as defined by IFRS), deciding questions related to eligibility and benefit amounts, and any disputes that may arise  from plan participants and for complying with the plan provisions, and legal requirements related to the plan and its operation. Aegon  the Netherlands runs, in principle, full actuarial and investment risk regarding the defined benefit plans. A part of this risk can be  attributed to plan participants by lowering indexation or by increasing employee contributions. Investment strategies are established based on asset and liability studies. The overall goal is to maximize total investment returns  to provide sufficient funding for the present and anticipated future benefit obligations within the constraints of a prudent level of  portfolio risk. These studies use for example return objectives and various investment instruments. Investment restrictions are updated  regularly and they result in asset allocation mix and hedges.  The contributions to the retirement benefit plan of Aegon the Netherlands are paid by both the employees and the employer, with  the employer contribution being variable. The benefits covered are retirement benefits, disability, death and survivor pension and  are based on an average salary system. Employees earning more than EUR 45,978 per year (as at January 1, 2013) have an option  to contribute to a defined contribution plan for the excess salary. However, the cost for the company remains the same. The defined  benefit plans were unfunded by EUR 2,119 million at December 31, 2013 (2012: EUR 2,191 million). As the assets held by Aegon  the Netherlands for retirement benefits do not meet the definition of plan assets, they were not deducted in calculating this amount.  Instead, these assets are recognized as general account assets. Consequently, the return on these assets do not form part of  the calculation of defined benefit expenses.  Aegon the Netherlands  2013 Target allocation of plan  assets for retirement  benefit plans for the next  annual period is: Equity instruments 15 - 55% Debt instruments 30 - 50% Other 12 - 30% 2013 Estimated approximate  effects on the defined  benefit obligation Demographic actuarial assumptions 10% increase in mortality rates (49) 10% decrease in mortality rates 49 Financial actuarial assumptions 100 basis points increase in discount rate (283) 100 basis points decrease in discount rate 350 100 basis points increase in salary increase rate 29 100 basis points decrease in salary increase rate (25) 100 basis points increase in health care trend rate 15 100 basis points decrease in health care trend rate (13) Notes to the consolidated financial statements of Aegon N.V.  Note 43 258 Annual Report 2013