"Life course scheme has failed"

30th July 2007, Comments 0 comments

30 July 2007, AMSTERDAM – The life course saving scheme, aimed at helping workers save up for periods of leave later in their career, is a failure, says economist Lans Bovenberg, the man who thought up the scheme. He said this in an interview with the Volkskrant today.

30 July 2007

AMSTERDAM – The life course saving scheme, aimed at helping workers save up for periods of leave later in their career, is a failure, says economist Lans Bovenberg, the man who thought up the scheme. He said this in an interview with the Volkskrant today.

He says that the arrangement proved too complicated and too focused on the long term. The scheme allows employees to set aside money to finance leaves of absence for study or family obligations in the future. Most workers prefer to take advantage of the save-as-you-earn scheme which was in place previously. That arrangement yields short term tax breaks.

Bovenberg recommends that the life course saving scheme be converted into "savings for lean times." People should then be able to use the money to supplement income from unemployment, disability or retirement benefits in the future. Bovenberg wants the save-as-you-earn scheme to also be incorporated in the arrangement and says that the savings facility should be extended so that the self-employed may also participate.

[Copyright Expatica News 2007]

Subject: Dutch news

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