It probably feels ‘ unfair ‘ because we are now going to consider retirement as a ‘ right ‘.
However, right from the introduction of the AOW and the forerunner of the current pension system, what we now know, the pension and the pensionable age have also been a ‘ duty ‘.
That sounds very strange, so let me explain that old view.Every employee and employer contributes ‘ compulsory ‘ to the pension. In principle, every employee is ‘ obliged ‘ to retire when he or she reaches the retirement age. There are some exceptions, for example, you also have a phenomenon as Emeritus professor.
Our pension system is also designed in order to make longer work beyond a certain age financially unattractive, especially when we weigh a utility curve of free time versus longer work.
That pension system has been designed in such a way that it was created from a compromise between left and right-wing national parties.In the past, retirement was intended only as an old-day provision. It was in fact poverty alleviation from a principle of solidarity. There was also little use because the average life expectancy was also lower than it is nowadays. This means that the costs have now gone up.
Solidarity is a concept defined as the consciousness that although individuals have different tasks, interests and values, the order and coherence of society depends on each other’s confidence to carry out those Specific tasks.This means that individuals understand that defending or further helping other people’s interests is ultimately in the interests of the individual. It can thus contribute to social cohesion.
Solidarity is not easy to sustain in difficult times, or when costs and contributions become higher.The following examples can be used to clarify how this works.
When the economy goes well, unions have more members, who contribute more.In bad times, however, you see that the number of members goes down. It does not have to be so much a crisis or recession that is the cause. For example, if real wages are lagging behind or stagnant (which in fact happened in the last 40 years outside the 1990s), this is also unfavourable for the number of members of trade unions. Real wages differs from nominal wages in the sense that the real wage is about how much you like the individual, outside costs such as food and rent or the mortgage.
This also plays for denominations, but also plays a part in individualisation.Many denominations are also charitable, but as soon as the membership decreases by individualisation, costs of maintenance on old buildings increases, there are few own members who meet the conditions to make use of this support (one If it is still too good), then solidarity is also under pressure.
When solidarity comes under pressure, the person who still contributes to this solidarity will see the use of these favors even more as a right.
Solidarity, as shown in the definition, also plays a role in confidence.One way we try to denote trust and make a deposit is by means of appointments. If these agreements are not fulfilled, our confidence is impaired. The appointment was previously that the pensionable age was 65 years. A shift to 67 years, is not according to the old appointment. That feels like injustice, something that people, who feel just as solidarity, can be bad.
However, there is still more to play.Although early retirement was seen as a poverty reduction, a change was made in the 1970s by a new political compromise, namely the fight against unemployment, particularly youth unemployment, which was very high at the time. Retiring became a duty to free up space for young people in the labour market. That could not be everywhere, you want to be able to use the employee’s experience, hence you also see something like a phenomenon as Emeritus professor at universities. Knowledge in highly skilled work is difficult to replace, it takes a lot of time.
However, when unemployment is low and economic is going well, this duty is not economically sensible.Even a construction worker with a worn-out body still has the experience he can share with younger colleagues and can sometimes also contribute productively to make use of machines.
The problem, however, is that we look at it with our glasses on our own frog country.Greece is very different in economic terms than the Netherlands. Although it is not always so great in the Netherlands, we do it much better in many respects than the Greeks. The Netherlands is economically seen to be a many more male economy than Greece. In Greece, for example, youth unemployment is dramatically high (2018 still estimated at 36.6%).
The way in which we look at things in the Netherlands, like solidarity, we often learn from childhood with celebrations like Sinterklaas.”Honestly we will share everything.” “Who is sweet gets goodies, who is naughty the roe!” In Europe, Greece is probably the best boy in the classroom in economic terms. 😉
Perhaps it is good to realise that work can also be nice.Having responsibility is a great good. Something we are sparing with, but we should have more of it. The meaning of life is for many of us having satisfaction in life.
This is indeed not fair to the Greeks who have to work a lot longer than the Dutch who have acquired shortened working weeks with a large part-time job and still receive a reasonably high pension.
The CBS has calculated that 65-plus households ultimately have an average pension income of 3,170 euro gross.A retired single woman averaged with 2,020 euros and the lone man with 2,370 euros.
While Greeks work much longer and enjoy a much smaller pension that the less than half of Dutch pensions represented.
Greeks work on average 25% longer than Dutch as the OECD dates demonstrates
So stop complaining and give a picture about Greeks.
Which nationalities work the longest hours?
- Mexico-2255 hours per year
- Costa Rica-2212
- South Korea-2069
- Czech Republic-1770
- New Zealand-1757
It’s as honest as it can be.
Both the Greeks and the Dutch have held democratic elections and governments have been formed from those elections.
Apparently, the Dutchman thinks it is more important than the Greek that his pensions will continue to be guaranteed in the future.With an increasing life expectancy, an increase is also needed to guarantee the payouts.
If you attach great importance to early retirement, my advice is simple:
- Vote for a reduction in retirement age.
Greece is not a neighbouring country of the Netherlands
I do not see why the distinction of retirement age within the EU would be unfair.One could emigrate to Greece, then one has the same right as in this case a Greek.
By the way, one can retire when you want.The retirement age strictly determines only the statutory right to a pension benefit or Aow. For a complete AOW one must have lived in the Netherlands for a minimum number of years.
Yes, but we can also say that the collective in the Netherlands is all a lot better than “in some of our neighbouring countries…”
Pensions were set at the time when the average life expectancy was.Due to an ageing population, costs have been sustained, and affordability is very much under pressure.
One way to catch that is to increase the retirement age, another may be to reduce the benefit, or you can increase the taxes for example.I assume that the benefit is lower in Greece.
Each country has different laws.You have to look at the whole.
But of course there are differences, and if you find that important enough, you can always try to change nationality.
As far as I know, Greece is not a neighbouring country of the Netherlands.But if you consider it desirable that there should be more equality in legislation, it will have to be done at European level.
Because we are averaging here on average than in Greece.
When pension became the standard, the age 65 was a good age to enter the pension, one lived perhaps 10 years longer.The ‘ elderly ‘ age really started with 65.
Nowadays, the 65-year-old is often still lustful and far from being ‘ elderly ‘. We live on average up to the 80 years and it is quite logical that the retirement age is pulled up.
Why do I read in all those discussions about retirement nothing about retirement?