The Dutch parliament has agreed to increase the retirement age by one month next year, after which it will increase by two or three months each year, until 66 in 2019. In 2024 the retirement age will be 67, after which it will be linked to life expectancy.

The retirement age for additional pension will rise to 67 in 2014.

The new measures were announced yesterday, after five coalition parties found an agreement on a package of spending cuts of around €14bn to lower the budget deficit to 3 per cent, as agreed in the European Union.

After the collapse of the government last weekend, the coalition partners VVD and CDA found support with three smaller opposition parties for some of the proposed spending cuts, which also include cutting the budget for employees continuing work after the official retirement age, and freezing the budget for increasing the number of older workers in the workforce.

With the new measures, the government has let go of the Pensions Agreement, according to which the state pension age would rise to 66 by 2020 and to 67 by 2025. Dutch unions have responded with concern to what they call a breach of the Pensions Agreement.

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