Brussels (Brussels Morning) – Belgium’s parliament greenlights significant changes to the pension system, including bonuses for extended work and tougher criteria for minimum pension payments.
Belgium’s pension system has been reformed, with a bonus being presented to those who work up to three years past retirement age and more stringent rules regarding getting to the €1,500 monthly minimum pension. The Belgian federal parliament has approved several modifications to Belgium’s pension system, which will take effect on 1 January 2025. Changes include a reward for those who work past retirement age and tougher laws regarding the minimum monthly pension payments.
According to Brusslestimes, anyone who works longer than the permitted retirement age can now depend on a bonus – up to nearly €34,000 for the most ambitious. This further bonus also applies to those who work part-time, those with the privilege of an early retirement and people who are self-employed.
Retirement Bonus: Earn More Beyond Legal Age
The bonus grows with every day past the legal retirement age that is performed, up to three years. The bonus applies to everyone, though people who have functioned for 43 years or more will earn bigger bonuses. People who have laboured part-time will get a pro-rated bonus. The highest likely bonus is €33,975, earned by those who have laboured full-time for 43 years and three years past retirement age. The bonuses can be spent out in one lump sum a few months after retiring or in instalments; it’s up to the retiree.
While the bonus officially begins on 1 January, there is a transition practice arranged for anyone retiring this year after 1 July. If you have operated past your legal retirement age, you will start building up the bonus on that date.
Minimum Pension: Number of Days Worked
Six years ago, the government conducted a minimum monthly pension of €1,500. That figure is now more than €1,600. This minimum has involved only people who have functioned for 30 years full-time or more years part-time. Anyone not running that has received a pro-rated minimum pension. Those 30 years included terms of unemployment. The recent pension reforms cancel that, suggesting that the employment must be actual work days and not days when unemployment benefits were received.Â
Retirement Age & Pension Criteria
As reported by flandersnews, the retirement age in Belgium is currently set at 65 years. However, there are impending changes as the retirement age is slated to increase to 66 next year and to 67 by 2030. Despite these alterations, it remains possible for individuals to opt for early retirement, albeit with economic implications that need careful consideration.
One notable aspect of the revamped pension system is the introduction of a bonus for those who choose to continue working beyond the legally prescribed retirement age. This bonus serves as an incentive for individuals to prolong their working lives and contribute to the workforce beyond the typical retirement age threshold.
Moreover, Belgians have the opportunity to estimate their future pensions through the federal government’s pension website, which offers information in Dutch, French, and German languages.Â
These modifications to the pension system apply to individuals aged 54 or younger as of January 1st. For older individuals, transitional arrangements are in place, with adjustments to the required number of workdays based on the individual’s year of birth. These measures aim to provide a fair and equitable framework for retirement planning while addressing the changing dynamics of the workforce and societal demographics.
