Netspar project group report: Bottlenecks and policy options for flexible retirement

Working longer leads to much discussion. It improves the sustainability of public finances, but not all people are able to work until they reach the state pension age. More flexibility in the transition from working life to retirement can have positive effects on health, (work) satisfaction and sustainable employability. The Netspar project group “Flexible retirement” (Flexibel met pensioen) analyzed the options and bottlenecks for flexible retirement, and provides a number of policy considerations. Read the report here (only available in Dutch).

The project group consisting of scientists and experts from the field listed the pros and cons of various schemes and policy options. For example, the one-on-one link between the state pension age and life expectancy, the tax consequences of part-time retirement and the tax facilitation of pension accrual for people with a low income.

Policy considerations
The authors note that people with a low income currently have fewer opportunities to save for early retirement with tax relief than people with a high income. They also point out that the effects of part-time retirement on net income are complex. The state pension age should be tested periodically by examining how absenteeism, disability, unemployment and poverty develop in the years before the state pension age.

About the Netspar project groups

Experts from science and practice come together in the Netspar project groups to discuss joint, current questions in the field of pensions and aging. The aim is to gain insight into similarities and differences and where parties can reach a consensus. The project groups provide valuable insights and often also recommendations for policy makers.