Tuesday, June 08, 2010

Netherlands: Social Partners Look to Raise Retirement Age to 66 by 2020

According to press reports, Dutch social partners have agreed on a flexible retirement age for second-pillar pensions and the state pension AOW by linking them to life expectancy, and the representative organizations of employers and employees said the retirement age should be raised to 66 in 2020, with decisions on further rises being made every five years.
The government, now collapsed, had proposed a rise of the retirement age to 67 in 2025 after earlier negotiations between the social partners broke down.

Under the agreed terms, workers are still allowed to retire at 65, but will receive 6.5% lower benefits, while working longer will entitle them to a 6.5% higher benefit for every additional year.

However, workers who are over 55 at the moment should still be able to retire at 65 for the full AOW benefit, the social partners added.
There are expectations that the agreement will become part of negotiations for a new government coalition after the elections. Further agreement among the employers and employees groups is still needed on increasing the perspectives of older workers on the labor market.

Source: Investments and Pensions Europe "Dutch social partners agree on retirement at 66" (July 7, 2010); Financial Times "Time to rethink wilting Dutch pension funds" (June 6, 2010)

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