Federal Planning Bureau: points-based pension favours low-income wage earners

A study produced by a researcher at the Federal Planning Bureau, which is reported on Thursday by L’Echo and De Tijd, reports that a points-based pension favours low-income wage earners.

Although a points-based pension is due to come into operation, it may benefit poorly-skilled wage earners, and particularly women with a modest pension. This is the indication of projections produced by the Federal Planning Bureau. Highly-qualified male wage earners, who are home owners receiving a high pension will lose some of their pension benefits in the reform.

The system will force the loss of €66 in pension for 10% of wage earners who have clocked up 40 years of working life, and who retired in 2011. This is generally a profile which tends to be male and include highly-qualified home owners.

Conversely, the points-based pension would yield a minimum of €62 to 10% of workers at the other end of the spectrum having the profile of low-skilled female workers, enjoying a low level of pension who are generally tenants.

The points-based pension system is currently being discussed by the National Council of Pensions. It consists in enabling workers to accumulate “points” throughout their career. The value of the points under the system would vary according to various set parameters.

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