Press Release
4 August 2015

The latest report published by the research committee on population ageing stresses the necessity of pension reforms

 

On Thursday, 9th July, the research committee on population ageing presented its report, thereby analyzing the long-term effects of population ageing. This report includes the main measures the present government has taken insofar as social security benefits and pension reforms in particularare concerned.

 

Minister for Pensions Daniel BACQUELAINE : « The publication of such a report highlights our strengths but also our weaknesses, thereby enabling us to find solutions. The figures and analyses in this report confirm the virtues of the pension reforms which will manage the effects of population ageing as fairly as possible. By re-establishing the balance in our social security system the government took its responsibility to the benefit of public interest ».

 

The report’s conclusions prove the positive effects of the pension reforms, such as inter alia:

 

  1. In comparison with the assessment of July 2014 the reforms will decrease rising budgetary costs caused by an ageing population by 1.9 % of GDP between 2014 and 2060.  In absolute figures this concerns a structural reduction of pension costs by approximately 8 billion euros. These prognoses may be revised, since they do not take into account other reforms such as the introduction of a points-based pension scheme. The modalities of this points-based system must be determined following consultation with the social partners.

 

  1. The reforms will increase the level of employment and in particular the participation rate of persons between 55 and 66. On the basis of the reference scenario established by the research committee on population ageing the level of employment of the aforementioned persons will increase by 15.4% between 2014 and 2060 and this in comparison to the annual report for 2014. In the long run the gap Belgium has compared to its European partners in terms of employment of seniors will be closed.

 

  1. The reforms will decrease pensioner poverty (Display graph : Risk of pensioner poverty - impact of the pension reforms - (PDF format)  | Source: research committee on population ageing, annual report 2015, page 56). Several elements substantiate this conclusion, in particular the upgrading of the lowest pensions thanks to the ‘well-being envelope’. Moreover, the increase of the statutory retirement age will permit those who work to build up additional rights and therefore to receive higher pensions.

                                                  

  1. The reforms will decrease inequality, since the lowest pensions will increase the most, thereby decreasing the risk of poverty for people having an incomplete career. Women make up a majority in this group.

 

 

The conclusion of the report drawn up by the research committee on population ageing is clear:

« The pension reforms will lead to both a decrease in the budgetary costs of population ageing and an improvement of the social sustainability indicators insofar as pensions are concerned.».

 

 

Contact

Koen Peumans, spokesperson of Daniel Bacquelaine, Minister for Pensions
+32(0)473/81.11.06 -  koen.peumans@bacquelaine.fed.be