Europe faces the problem of an ageing population and how to finance pensions.  

A study from the UN World Population Prospects (2008 revision) reveals that the percentage of people aged 60 or over in 2005 was 22%, and it is predicted that this percentage will rise to 32% by 2050. This increase will be accompanied by a decrease in the number of people of working age working age. This raises concerns in particular regarding pensions as they will have to be provided for a much longer duration of retirement. By 2030, it is forecasted that the number of pensioners will have doubled. There will be less people working to pay for more pensions and for a longer period.

In Belgium the legal retirement age for men and women is 65 years. The effective retirement age is 60 years, which is amongst the lowest in Europe, which has an average effective retirement age of 64 years.

On February 9, two seemingly contradictory articles were published in L’Echo, a Belgian newspaper, leading to some confusion as to whether or not the Minister of Pensions, Michel Daerden, proposed increasing the effective retirement age. Mr Daerden since affirmed he has no intention to increase the effective retirement age. On the contrary he would rather increase the number of workers aged between 55 and 65. Currently only 35% of this age group work.

AmCham Belgium’s Position

Although it is not Mr Daerden’s intention to increase the early retirement age, AmCham Belgium, in its publication Priorities for a Prosperous Belgium, believes that increasing the early retirement age from the current 60 to 65 years, and eliminating or at least discouraging possibilities to retire earlier, would significantly boost employment and in turn stimulate economic growth. A reform which it regards as necessary if Belgium is to meet the challenges of an ageing population.

In the future we will be faced with a smaller working population. Amcham Belgium suggested measures such as increasing the early retirement age and encouraging continued training, as a step to increase the number of people between the ages of 55 and 65 working.

Belgium needs to plan ahead and develop policies which encourage workforce participation, particularly amongst older workers. Belgium’s economy would develop more quickly and it would become more competitive as a result.

For more information on Priorities for a Prosperous Belgium, click here