NETHERLANDS -The Dutch Labour Party (PvdA) want a tougher policy on discouraging workers from taking early retirement, said its leader Wouter Bos.

As part of this, Bos wants to restrict the purposes of the new tax-friendly levensloop, or life-course scheme to provide leave for care and additional training, but only for under 55s, he explained during a conference at pensions research network Netspar. The only exception could be for part-time retirement, he added.

The leader of the PvdA , which is in opposition, proposes to combine the current budget for the levensloop and the contractual savings scheme ‘spaarloon’ into one scheme, which would be made more attractive to low and middle-income workers.

As a positive incentive to postponing early retirement, Bos suggested abolishing tax on all savings of those over 65s. “This could be combined with lower tax rates, or a higher and flexible state pension – the AOW,” he indicated.

Bos also wants to open the possibility that people with entitlements under the early retirement scheme VUT, can keep their rights until there are over 65.

The PvdA leader accused the present government of Christian-Democrats (CDA) and liberals (VVD) of having shifted pensions savings for early retirement to the more tax-friendly regime of ordinary pensions savings.

“The levensloop is now mainly used to finance early retirement, which has never been the intention,” Bos criticised. “The aim was a career break for parental leave or study, in order to maker employees work longer.”

“Pension schemes can be made both fair and efficient, by broadening the tax base and making it more progressive toward high earners, whether they are over or under 65,” Bos stated.

Finance minister Gerrit Zalm (VVD) totally disagrees with Bos' views. "I don't want to raise tax for pensioners," he stressed this afternoon.


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