For the first time the pension budget exceeds € 40 billion : a reform is inevitable

Click to display the evolution of gross pension expenditure graph.pdf

The ageing of the population and the increase in life expectancy blows up the pension expenses. In a lapse of time of nine years the pension budget has increased by 63.5% and, since 2013, the increase in the total budget exceeds €1 billion per year. « It has become necessary to link the retirement age to life expectancy” states Minister Bacquelaine, as the pension expenditure is exceeding 50% of the social security budget. Without reform this increase will even escalate for the worse; it is therefore more than necessary to maintain our social security budget, as this will also continue to increase with the ageing of population.

A reform of the current pension system is therefore necessary to keep the pension amounts to standard and to secure their payment. According to Minister Bacquelaine, «  we have to ensure a decent pension for current and future pensioners. These people should be able to live life with dignity and have sufficient purchasing power ». In order to keep the pension system affordable for future generations this reform is essential.

The increase of the legal retirement age is part of the measures needed to cope with the increase of expenditure. This increase will take place gradually : retirement at the age of 66 in  2025 and at 67 years old in 2030. However, this does not apply to all professions: exceptions are foreseen for the long careers and heavy-duties. Other incentives, such as being able to earn supplementary money without being taxed after retirement or the introduction of the part-time retirement, will encourage workers to remain in work longer. Finally, the supplementary pensions will be reinforced and extended towards all workers in order to consolidate our pension system and  to maintain our pensioners’ purchasing power.

Download the Gross expenditure table.pdf

Contact

Koen Peumans, spokesman of Daniel Bacquelaine, Minister of Pensions                                   
+32(0)473 81 11 06 -  koen.peumans@bacquelaine.fed.be