Everyone who works is entitled to a full state pension supplemented with a pension after 50 years of work. So far, this has been a reason for good old-age provision. Years of unfavorable market forces and an increasing number of retirees compared to workers have caused problems with pension benefits. What are the advantages of working until retirement or after retirement age?
Working after retirement age
- Coverage issues
- Worked enough?
- Working until legal age
- Stayed abroad temporarily
- Low taxation
- Find suitable work
- Extra money to spend
Coverage issues
One fact is that the AOW was created at a time when there were relatively few retirees compared to the number of workers. Due to improved general health, people are getting older, and the post-1945 baby boom has reached retirement age. This combination ensures that the ratio has changed to a relatively large number of pensioners compared to a small number of workers. As a result, coverage has become unfavorable, meaning that people can receive less and less in retirement. In other words, the retiree will deteriorate relatively over time.
Worked enough?
Working a lifetime can have a major impact on a person’s physical condition, especially when it comes to heavy professions. After working for a certain period, they have deserved to quit. The will is often no longer there to continue. However, this is not the case for everyone. Many job types have little or no impact on the physical structure, which leaves a lot of will to continue. Some retirees want to benefit even though they have already reached the age to retire. This can certainly have a positive effect on the financial situation of the older employee. In addition to the AOW and supplementary pension, you can earn additional income, which can be used in a fun way.
Working until legal age
In order to fully enjoy the state pension and pension, people normally continue working until retirement age. Until that age, people pay a high tax rate, making it practically necessary to continue working. This does not apply to those who have managed to put some pocket money aside. It can be used to retire early. For all other people, they will have to work up to the legal age in order to enjoy their pension.
Stayed abroad temporarily
Citizens who have previously spent a few years abroad for work in the form of emigration may not have received part of the pension accrual. Strictly speaking, 2% pension is accrued every year. If people have worked for a shorter period of time, they will not have sufficient pension accrual. This means that people may not be able to make ends meet enough. To compensate for this, it may be attractive to take an additional part-time job for a few hours a day or a week. If you are going to work abroad for a Dutch company for a long period of time, make sure that social contributions continue as normal, so that you continue to have sufficient pension accrual.
Low taxation
Continuing to work once you have reached retirement age means that you have to pay very low taxes on the additional income. This creates the condition that only work is required for a short period of time per week, while the older worker still receives a nice net amount. This can provide a good incentive for the retiree to remain part of the labor process. People remain involved, which keeps the older person busy. It can also be seen as a form of therapy to keep busy while doing it.
Find suitable work
People are of course older and so it is important to find suitable work. This can be done by the old employer by possibly training younger employees in the field part-time. Older employees have knowledge that is not transferred within a training course. In addition, people may be looking for quieter work. A handyman or a job where one does the honors for a few hours. Several job types are suitable so that people can contribute to society and benefit from it.
Extra money to spend
In addition to having a daily activity in which one is distracted, one also has extra money to spend. This can be used to finance travel or to pamper the (grand)children extra. By continuing to work part-time as an older person, one remains physically and mentally active. In addition, the person can age vitally. Many benefits can be achieved if the older employee is still fit and strong enough. With a lot of will, one can continue to work in a fun, time-wasting part-time job.
read more
- Retirement activities: what are you going to do in retirement?
- Good pension: is your pension well arranged?
- Working longer for your pension, how long do you have to continue working?
- Retirees will pay more taxes