The OECD has raised concerns about Belgium’s planned pension penalty for early retirement, citing issues with its effectiveness and potential to exacerbate inequalities.
The report, titled “Pensions at a Glance 2025,” highlights that the average retirement age in Belgium in 2024 was 62.4 for men and 60.6 for women. This is below the OECD average, which stands at 64.7 for men and 63.6 for women.
Across the 38 OECD countries, only Luxembourg, Slovenia, and Turkey see both men and women retiring earlier than in Belgium. In France and Spain, men also tend to retire earlier than the OECD average.
The OECD points out that Belgium has a significant gender pension gap. In 2024, women’s average pensions were 31% lower than men’s, compared to the OECD average gap of 23%.
The report notes Belgium is one of the few countries where early retirement can occur without consequences.
The Federal Government’s plan to introduce penalties and bonuses linked to early or delayed retirement aims to encourage later retirement.
However, the planned pension penalty does not apply to individuals who have worked at least half-time for 35 years. According to the OECD, this exemption undermines the policy’s effectiveness.
The organisation warns that this could leave a large group of people with little incentive to work longer.
It emphasises that the exemption may particularly affect those who are more likely to work longer, such as individuals with stable employment histories and fewer periods of sickness or unemployment.
The OECD also cautions that the measure could increase inequalities, as the effects are expected to disproportionately impact women.
