Plans to raise state pension age in the Netherlands under fire

Part of the coalition agreement between D66, VVD and CDA includes plans to raise the state pension age in line with life expectancy in the Netherlands. This has received heavy criticism from opposition parties and trade unions.

Dutch state pension age to increase faster

The current age to start receiving the state pension (AOW) in the Netherlands is 67 years. This increases by eight months for every extra year in life expectancy, as was determined in the 2019 pension agreement between the government, employers and trade unions.

However, along with plans to increase the healthcare deductible and make cuts to the unemployment benefit, the coalition between D66, VVD and CDA wants to raise the state pension age in line with life expectancy from 2033. This means that for every year added to the Dutch life expectancy, a year would also be added to the state pension age. 

According to NOS, this will affect people who are currently under the age of 60 as they are expected to live longer. For example, residents in their 20s previously could have expected a state pension age of 70, but this would end up being closer to 72 years under the new plans.

The life expectancy of someone who is currently 65 years old is 85, on average. This is expected to increase to 90 by 2068, according to Statistics Netherlands (CBS).

Unions and opposition slam state pension plans

Dutch trade unions have heavily criticised the plans, with FNV chairman Dick Koerselman calling it “morally reprehensible” that the coalition intends to break the rules of the earlier agreement, according to Het Parool. The largest union in the Netherlands has not ruled out taking action if the government continues with the plans.

Several opposition parties, such as GroenLinks-PvdA, BBB and 50Plus, have also called out the plans, reports AD. Indeed, GL-PvdA leader Jesse Klaver stated that the new coalition needs a “drastic change of course” if it wants the party’s support, calling the plans to increase the healthcare deductible and other cuts to social security “irresponsible”.

In response to criticism in the debate on the coalition agreement with the opposition parties on Tuesday, D66 leader Rob Jetten stated that the increase in the state pension age is “still a long way off”, referring to the start in 2033. “I assume this will be one of the first topics we'll discuss with the social partners,” he said. 

Jetten also emphasised that the coalition agreement is providing a direction the parties want to go in, but they still need to get majorities and “seek support for all plans”. The D66-VVD-CDA coalition is a minority cabinet holding only 66 seats out of 150 in the House of Representatives (Tweede Kamer).