NETHERLANDS - Part-time Pension is the only "real" solution that the Dutch government has, to encourage older employees to continue working to their the retirement age, new research shows.
A study carried out by the Dutch-based insurance group AEGON found that despite government plans to abolish early retirement options, a huge majority say that they plan to retire before they reach the age of 65.
Around 75% of employees in the age-group of 45-60 years said that they planned to retire before they reach 65.
Currently, employees can stop working at the age of 57 years under various early retirement options.
The AEGON research found that the Netherlands needs 25% more employees in the age-group of 55-65 years to continue working, if it has to comply with the new EU directive which comes into force in 2010.
“The Dutch government does not seem to be on the right track to encourage more people to continue working and the research shows that part-time pensions are the only real solution,” the study said.
AEGON said that though part-time pensions were a viable option, few employers made use of it. Employees will be encouraged to work part-time and they can continue to contribute towards their pension, the report said.
The research found that 67% of employees thought that part-time pensions were a good idea.
Only one in every four older employees said they plan to continue working up to the age of 65 years. A quarter surveyed said they would continue working part-time. 10% of employees said they planned to continue working longer than planned but not up to the age of 65. The study said that already around 80% of employees quit working at an early age.
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