Netspar Brief 12: Later Retirement: Decisions for Now and Later

Anyone who has not yet retired will be subject to a higher social security age. While the policy for promoting later retirement is generic, the implications of the measures instituted differ according to the class of worker, such as between people with a high or low income, the highly or poorly educated, and healthy or unhealthy people. To address these discrepancies, there is a growing call for allowing greater flexibility in decisions concerning retirement. In this twelfth Netspar Brief, Daniel van Vuuren, Jonneke Bolhaar, and Rik Dillingh (all of the CPB) study which short- and long-term measures might prove successful in alleviating some of the harsher aspects of the higher retirement age and in keeping as many people as possible fit for the job market.

One of the study’s findings indicates that flexible or part-time retirement options are not much use for people with little or no supplemental pension. Meanwhile, temporary arrangements such as special provisions for physically demanding occupations may actually interfere with the incentives for investing in long-term job proficiency. In the long term, it would be worthwhile for policy makers and employers to encourage people to plan ahead by promoting healthier choices, providing more insight through periodic financial assessments, and investing in education and personal development. The current generation of 60-65 year-olds could benefit from delaying the increase in the retirement age, without changing the overall course, but such an option would be expensive in the immediate term. In addition, a temporary extra-large budget for education and retraining of older workers could provide consolation.

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This Netspar Letter has been realized jointly with the Central Planning Board and simultaneously issued as CPB policy Brief on www.cpb.nl.

Download the Netspar Brief and the infographic (both only available in Dutch). An English summery of the Netspar Brief is available.
Read the pressrelease (only available in Dutch).

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(All only available in Dutch)

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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