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Dutch Plan Sponsors Will Continue to Struggle to Retain Older Workers

10 August 2012 (PLANSPONSOREurope.com) – Dutch plan sponsors may have to brace themselves for increasing numbers of older workers leaving the workplace due to the generosity of first pillar pensions, according to Mercer.

DutchNews.nl reports the Dutch central bank DNB says it wants more reform in the jobs market in order to keep higher numbers of older people in the workplace. It thinks older people are being held back because of the relatively high level of redundancy protection and the long period of unemployment benefit and wants measures outlined in the five-party coalition package of austerity measures to be implemented.

The bank says in a report that although unemployment at an average of 4.4% is low on an international level, the number of people between the ages of 55 and 65 with a job is too low at 54%.

A Mercer spokesperson told PLANSPONSOR Europe the Netherlands generous state pension is the reason behind relatively low number of older workers in the workplace.

“A percentage of 54% is relatively low, but the Dutch focus is more on the average percentage (of 4.4%). Unemployment for older people is less of an issue due to the horizon for the older generation and our social security system.

“The percentage of 54% is much higher than a few years ago and is expected to go up in the years to come.
 
“The people born before 1950 have a retirement age which is significantly below 65 years. For younger generations this is not the case. That is why the 54% will increase.

“Social security is on a high level. If you lose your job at old age, you get 70% of your salary for say 3 years and after that a lower amount. The spirit to go to work is not so high. 

“In the past the productivity of older people was lower, compared to their salary. As for now, it is probably less the case, but employers still prefer to hire younger employees.”

 


 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com





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