Pensionable age remains unchanged
Central to the reform is the strengthening of the link between actual employment and the accrual of pension rights. Unlike in other countries, the statutory pensionable age will not be touched: it remains 66 years (and 67 from 1 February 2030). The required age and length of career for early retirement with entitlement to the state pension also remain unchanged (normally 63 with 42 years worked, or at the earliest from the age of 60 with 44 years worked).
Changes to conditions relating to career years for early retirement
The definition of a year worked (a so-called ‘career year’ ) is being tightened. Under the current rule, the number of days per year required to count as a year towards the early retirement career condition is 104 days actually worked or treated as equivalent. From 1 January 2027, only years with 156 days of actual work or equivalent will count as career years. The new 156-day requirement will apply to all career years, including those prior to 1 January 2027, with the exception of the first career year (which remains 104 days). Taking early retirement will therefore become harder.
Alongside this, the possibility of early retirement is being extended with the new option of retiring as early as 60 after a long actual career of 42 years, provided that each career year comprises at least 234 days of actual work.
Bonus and penalty system as an incentive to work for longer
In addition, new financial incentives are being introduced to encourage people to work for longer. A bonus and penalty (‘malus’) system is being introduced that takes account of your year of birth and the length of your career.
Read the complete article here: https://www.vanbreda.be/en/insights/the-pension-reform-enters-its-final-phase