The Dutch government is moving forward with plans to raise the state pension age to 70, a move that has sparked immediate backlash from labor unions and renewed debate over the long-term sustainability of the country’s social security system.
The decision, finalized on February 2, 2026, comes despite recent agreements made in a pension accord, according to reports. Piet Fortuin of CNV, a Dutch trade union, expressed outrage, stating, “I find it scandalous. We made agreements with each other regarding the pension accord, and the ink is not even dry before the new cabinet starts tinkering with the agreements.”
Financial journalist Martin Visser explained the rationale behind the increase, noting the difficulty in identifying alternative savings measures. “Try to find another saving of more than 2.5 billion [euros],” Visser said. The move underscores the fiscal challenges facing many developed nations as populations age and healthcare costs rise.
The proposed increase is not without its critics within the government itself. Recent reports indicate that the three governing parties hold only 66 seats in the Tweede Kamer (lower house of parliament), necessitating a broader coalition to secure legislative approval.
Alternative solutions to address the financial strain on the AOW (Algemene Ouderdomswet, or General Old Age Act) have been considered, including requiring pensioners to contribute to the system. However, this proposal has also met with resistance, as retirees argue they have already contributed throughout their working lives. According to Visser, “They think: yes hello. They have paid contributions all their lives and therefore find the arrangement unfair.”
Discussions are also underway regarding potential reforms to healthcare to alleviate pressure on government finances. The government faces a tricky choice between addressing the AOW and reforming healthcare, or potentially impacting both.
The Tweede Kamer is also considering adjustments to the AOW plans, though details remain fluid. Recent reports suggest that the government heard criticism on the AOW plan “loud and clear.”
The debate over the AOW highlights the broader challenges of balancing social welfare commitments with economic realities in an aging society. Raising the retirement age is a common, though often unpopular, solution implemented by governments worldwide to manage pension costs.
