Workers expected to receive less of their last salary as pension, study shows
Share article:
Share article:

Workers expected to receive less of their last salary as pension, study shows

© Belga

People beginning their careers today in Belgium will go on retirement with a share of their last salary that is 14% lower than those who retire today, the OECD notes in a report issued on Tuesday.

The OECD (Organisation for Economic Cooperation and Development) report focuses on pension reform. It notes that workers born in 1956 who go on retirement in Belgium keep 53% of their last gross salary. Should pension policies remain unchanged, pensions as a percentage of a worker’s last salary will drop to 45.7% for persons starting out today, the study noted.

This downward trend is expected in 21 OECD member countries, while gross replacement rates at the normal retirement age is expected to increase in 10 member countries. In general, the rates will drop by six points, which implies that the pension of a worker born in 1996, after an unbroken career, will be 10% lower than that of her counterpart born in 1940, according to the study.

The OECD also highlighted the fact that the portion of adult life spent on retirement should increase by 10% in the OECD countries. It said that, to stabilise this proportion, retirement age should be increased to 67.2 years for the 1996 cohort. It is currently 65.8 years.

Austria, Belgium, Chile, Germany, Luxembourg, Poland and Slovenia are the countries where time spent on retirement has been increasing the most, according to the OECD report.

The Brussels Times

 

Latest news

Massive renovations for iconic venue in the heart of Brussels
Brussels concert hall Ancienne Belgique has announced plans to renovate the AB Café and the AB Salon and is looking for a contractor fit for the job. ...
Display of child’s room in Brussels raises awareness of foster families
An exhibit that features a fictitious child’s bedroom has been on display since Tuesday at the Place d'Armes in Namur, with the support of the ...
Test results show pupils have fallen behind in Flemish schools
Learning delays have been reported in almost all subject areas in Flanders since the start of the pandemic, a trend that continued in 2021, a ...
Belgium considers relaxing testing rules for UK travellers
At the next Consultative Committee meeting, Belgium will look into relaxing the testing and entry policy for travellers coming from the United ...
Jette libraries start giving plants away with books
Visitors to libraries in the Brussels municipality of Jette will soon be able to pick up a free plant along with a book, thanks to the new Plantotek ...
‘Do what you want, but do it as safely as possible,’ experts warn
As the daily number of new coronavirus infections exceeds 3,000 for the first time since May, infectious disease expert Erika Vlieghe and ...
‘We’re running dry’: Brussels teacher shortage reaches critical levels
The teacher shortage in Brussels is affecting schools across language borders, according to Brussels’ Minister for Multilingualism and Dutch ...
Belgium in Brief: Getting To The Airport
When I saw the news of plans for a tram line and cycle path to connect Brussels' outskirts to the airport, my first reaction was sheer joy.  Let ...
EU should invest €5 trillion in climate plan, says State Secretary for Economic Recovery
The European Union must invest €5 trillion in its climate plan over the next decade to "retain its credibility as a political project," according ...
Brussels café managers ask for security guards following stabbing over vaccination proof
Managers of cafes in Brussels are asking to be provided with security guards if they’re to continue enforcing rules surrounding proof of vaccination, ...
1.6 tonnes of drugs, 27 suspects: Belgian police bust major gang
The Belgian police and public prosecutor's office arrested 27 suspects and seized 1.6 tonnes of drugs, over €80,000 and a number of weapons in a ...
75% more sexual violence victims seek help in Brussels since summer
There has been a 75% increase in the number of people asking for help from the Brussels Centre for the Treatment of Sexual Violence (CPVS) since the ...