People who keep working past the age of 65 should be given a big reduction in income tax and be allowed to keep their state pension, according to a government working party. The group’s chairman Ed Nijpels told the Telegraaf today that a top tax rate of 18% would encourage more people to stay in work.

‘It’s not a silly consensus-based solution but a real tax advantage,’ Nijpels said. The working party was set up to advise the government on encouraging older people to keep working. Only around one in five people aged over 60 is still in a job in the Netherlands.