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← Overview Database of Innovative Social Policies in Europe

Abolishment tax-credit early retirement

Country of implementation
The Netherlands
General short description of the innovation
Tax-credits for saving for early retirement have been abolished, making early retirement more expensive for individual employees. This innovation is part of a longer trend since the nineties to make early retirement financially less attractive, to reduce early labour-market exit options (below retirement age) and to individualise the responsibility for saving (as opposed to earlier collective schemes)
Target group
Older Workers
Policy Field
  • pension
Type of Policy
  • public
Duration of the policy
Since 2005
Scope of innovation
  • Spatial coverage: National
General description of (intended) objectives and strategies
Early retirement schemes in the Netherlands are part of collective labour agreements (cla) and determined sectorally by social partners. Until 2005, tax-credits were available for the premiums and savings were exempt from taxes, making participation in these schemes attractive. These fiscal advantages were abolished.
Nature of the innovation-long-term perspective
Early retirement becomes a predominantly individual responsibility without state support. More and more, sectoral pension funds are abolishing their schemes.
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • others (Retrenchment of tax-credits for early retirement)
Intended target group
Older workers
Working age population
  • main source of income: paid work
Actors involved in policy-making/implementation and/or evaluation
  • central state (Regulation)
  • employees (organised or individual)
  • employers (organised or individual)
Clarification of the role of various actors
State support for early retirement has been abolished. Parallel, social partners in most sectors have agreed to make early retirement schemes more sober, meaning that collective provisions for early retirement have become less important, although several transitional arrangements still exist for certain categories of older workers.
Intended output
  • subsidies/tax-credits (Abolishment of tax-credits)
Intended and unintended outcomes
Not available
Clarification of outcomes in terms of impacting resilience and labour market inclusion
This specific measure has not been evaluated. However, various sources state that the average age of early exit as well as the labour-market participation of older workers have been increasing because of the combination of measures since the late nineties to individualise the responsibility to finance early retirement and to abolish fiscal credits.
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