The OECD published data that show the impact of the recent restoration of the statutory retirement age of 65 years for men and 60 for women. Retiring at the reduced statutory pensionable age lowers benefits. The pension is determined by lifetime contributions and remaining life expectancy at the time of retirement. Retiring earlier lengthens the expected remaining life and reduces pensions by around 6% per year. Lower pensions will result in a higher number of people, especially women, relying on minimum pensions, which in turn weakens the financial balance of the public pension scheme. Contrary to the regular earnings-related pensions, minimum pensions are not fully covered by past contributions and require additional financing sources. Increasing labour market participation will be a key issue to keep the pension system sustainable.
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For more information, please contact the editor Jan Cremers or Nuria Ramos Martin, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Willy De Backer wdebacker@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. Since June 2013 readers can consult our archive and search through all articles in our database at www.cbnarchive.eu. You may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.
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