Senate to debate pension age increase after all

The upper house of parliament, or senate, will on Tuesday debate the cabinet’s plans to increase the state pension age to 67 after all, the Telegraaf reports.


The green party GroenLinks, which had wanted to leave the debate until after the September general election, has now agreed to proceed with the legislation, the paper says.
GroenLinks is one of five parties which agreed an emergency package of austerity measures at the end of April, after the coalition government collapsed. The increase in the state pension age was part of this deal.
Stages
The plan, which has been approved by the lower house, involves a staged increase in the retirement age and will be the first increase since 1957.
The retirement age will rise in stages to 2019 when it will be fixed at 66. Then, the pension age will be increased to 67 in 2023.
Last week, new figures emerged which show efforts to encourage people to work longer are paying off and the average retirement age is now 63.
Risks
According to the Financieele Dagblad, pension experts on Monday told senators during a special hearing the rise in the retirement age is being introduced too quickly.
In particular, the one-month increase scheduled for next year brings considerable risks associated with IT systems, lost income and lack of information for people who will be directly affected.
The change should be delayed by at least a year to ensure it goes smoothly, experts from different disciplines said. The move is expected to save €100m next year.
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