There have never been as many people over 65 in the Netherlands as there are now and this number is still increasing. What are the consequences of this now and in the longer term for retirement age and healthcare? What about our neighboring countries? What is fair when we look at ways to solve this problem?
Good news for the unemployed
Large groups of people reaching the age of 65 also mean many people disappearing from the labor process. These jobs will largely have to be filled, which will increase the demand for employees.
AOW
The AOW is becoming more and more expensive. More and more people are eligible for an AOW benefit and this puts a heavy burden on government expenditure, but they have found a solution. Gradually raising the state pension age, but this will not be enough. There are currently four working people for every person over 65, but in 2040 this will be only two working people. This makes the AOW unaffordable. Fortunately, the Netherlands still has a high birth rate compared to other European countries. As a result, the Netherlands is still growing and the major population decline in the Netherlands will only occur from 2040 onwards. The highest concentration of the gray wave is found in the peripheral provinces and there it also grows fastest. Limburg, Zeeuws-Vlaanderen, Drenthe, Friesland and Groningen have the highest percentage of state pensioners. In addition, a province such as Limburg is already experiencing a decline in the number of inhabitants. Working longer does not only have a negative side. Most of today’s over-65s are vital and healthy and working longer also keeps them mentally busy and therefore mentally healthy for longer.
It used to be common for people to quit after forty years of service. This has not been the case for a long time now. Options such as early retirement and pre-pension are made virtually impossible by the government. People under the age of fifty now have to work at least until they are sixty-nine. They will easily achieve those forty years of service and for many it will be many years more.
From about the age of 55/56, people’s productivity decreases. They have to slow down and can do a little less work because of their age. The question is whether employers can take this into account sufficiently. Of course, there are also advantages to employing people over the age of 55. They are more resistant to stress and have extensive knowledge and experience.
Aging and healthcare
Due to the aging population, healthcare is becoming unaffordable. There is already talk of investigating new forms of insurance. The RVZ also talks about higher personal payments, more volunteers and saving for major health expenses. More personal responsibility and self-reliance on the part of citizens is becoming a requirement. The RVZ report even mentions care declarations in which citizens must indicate how they want to arrange their old age and how they will finance this. Currently, six out of seven people over the age of eighty live independently. That is already much more than was previously the case and this should preferably increase in the future, which is why people are increasingly talking about suitable living for life. These are homes that can be adapted to the circumstances, with wide passageways, safe stairs, easily accessible switches and sockets and low or absent thresholds.
Active elderly
It is now possible to grow old in good health. It is actually quite strange that people in the Netherlands still often retire before the age of 65. When one reaches the age of 85, one has received 20 years of state pension and many have not yet worked for 40 years. It is understandable that this is no longer possible, but the question is: Who will pay for this? Does it all fall on the shoulders of today’s over-35s or will the current over-65s also pay for it? Rolling back acquired rights is never fun, but the sooner this happens, the fairer it will be for the over-65s in 2040.
Aging and our neighboring countries
The aging population in the Netherlands is less than in our neighboring countries. This is because relatively many children are still born in the Netherlands. Germany has the fastest aging population of all countries in the EU. There too, the retirement age will be increased (to 67 years) and the pension will be less. Since 2010, no pension increases have been given in Germany and eventually pensions there will decrease.
Because the aging population in the Netherlands is slowing down, we have the advantage of being able to look at our neighboring countries . How do they deal with this? What works and what doesn’t?