“Pension funds play a crucial role in the success of phased retirement programs”
What is the focus of the paper?
In this paper, the researchers analyze employees’ views on the limitations of phased retirement offered by their employers and pension providers. Additionally, HR managers were interviewed about their organizational policies and the opportunities available for employees to retire gradually.
What are the key findings?
The study shows that only a small percentage of organizations do not offer any form of phased retirement. This aligns with the Dutch practice of supporting employees who wish to reduce their working hours. However, this option is not available to everyone. Many employers limit phased retirement to specific groups, depending on the nature of the job and productivity of the worker. Ad-hoc arrangements provide fewer opportunities for phased retirement and therefore developing formal policies are essential. However, formal arrangements are not widely in place and often allow for exceptions.
What are the implications?
- Awareness campaigns and education by pension funds can increase both employees’ and employers’ awareness of the advantages of phased retirement, such as increased vitality and higher productivity.
- Formal policies promote the provision of phased retirement. Social partners can assist in formalizing and standardizing arrangements while emphasizing their importance through collective agreements.
- Tax benefits or subsidies can help reduce financial barriers for employers.
- Employers can learn from each other’s best practices, which can provide valuable insights and solutions.
- By enabling phased retirement, older employees can work less hours without significant financial consequences. Pension funds can play a key role in the success of programs that make phased retirement financially attractive, such as the Generation Pact.