Calculating pension penalties based on birth year is just one of many working hypotheses being considered as part of pension reform, according to a statement released by the Jambon cabinet on Wednesday.
Several newspapers reported on Wednesday that the penalty percentage could depend on birth year, with those born between 1961 and 1963 losing 2% per early retirement year, those born between 1964 and 1972 losing 4%, and those born in or after 1973 losing 5%.
The Jambon cabinet clarified that this is just one of several hypotheses aimed at encouraging people to work longer. “We’ve identified ways to bypass the penalty, and our goal is to discourage early retirement,” a spokesperson said.
The final proposal has not been decided yet. “Everything is still shifting,” the spokesperson added. “Inter-cabinet working groups are ongoing, and the impact of each hypothesis is being analysed. One key consideration is ensuring that the penalty does not disproportionately affect women compared to men, as noted by the Study Commission on Ageing.”
What is clear, the spokesperson noted, is that “the final version will not exceed the coalition agreement.”
According to the coalition agreement, from 2026, pension amounts will be reduced by a penalty of 2% (until 2030), 4% (until 2040), and 5% (from 2040 onwards) for each year of early retirement before the legal age, if the retiree meets the career condition for early retirement but not the 35-year work requirement of 156 days with actual work performance and 7,020 actual workdays.
