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    The AOW and life expectancy

    The legislative proposal ‘Bedrag ineens, RVU en verlofsparen’ is not the only plan made in the ‘pensioenakkoord’ (agreement on pensions) which is currently under review by the government. Recently, both chambers of the Dutch government voted on another legislative proposal to change the AOW-age, the age at which an individual is eligible for a state pension. This legislative proposal will replace the current one-to-one match between the AOW-age and retirement age with a ‘two-thirds’ match. This means that if life expectancy increases by one year, and hence the retirement age increases by one year, the AOW-age increases by only eight months. Officially, the changes will go into effect in 2026. The AOW-age for the preceding years has already been set. The changes are intended to slow down the rapid increase in the AOW-age.

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