New milestone: 2.5m Dutch pensioners

9th May 2005, Comments 0 comments

9 May 2005, AMSTERDAM — The number of people receiving an old-age pension in the Netherlands has risen to 2.5 million, the social insurance bank SVB said on Monday.

9 May 2005

AMSTERDAM — The number of people receiving an old-age pension in the Netherlands has risen to 2.5 million, the social insurance bank SVB said on Monday.

When the AOW pension was introduced in 1957, some 738,693 people were listed as recipients. In 1968, that number had increased to one million.

By 1989, the number of people receiving the pension — anyone aged 65 and over — had increased to 2 million.

The SVB — which administers government pensions — expects to have 3 million registered AOW recipients in 2011 as the population continues to age.

The number of recipients is expected to keep rising until 2038, when 4.5 million will be on the pension. The number of pensioners is then expected to start declining.

Besides the ageing population, the SVB said fewer people are dying before their 65th birthday, leading to a rising number of pensioners.

Dutch nationals are becoming older, with age expectations rising in recent years from 78.9 to 80.5 for men and 79.4 to 84.2 for women.

The AOW pension is primarily paid for by Dutch employees under the age of 65. As the population ages, fewer people will be paying for a rising number of pensioners.

In 1957, there were 16 pensioners per 100 people aged 20-65. In 1968, that ratio had risen to 19, and 22 in 1989. It is currently 25:100. By the end of 2011, the ratio will have risen to 30:100 and 48 in 2038.

[Copyright Expatica News + ANP 2005]

Subject: Dutch news

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