Population ageing in the Netherlands: Demographic and Financial arguments for a balanced approach
4 Inequalities in ageing: sex and education
To properly assess the ways in which population ageing is being addressed, as reflected for example
in the standard, fully uniform retirement age (or the plan to gradually push this up) and the recent
abolition of early retirement facilities before the age of 65, it is important to examine demographic
differences among the population. A uniform approach can lead to unequal treatment, with on
balance a transfer occurring from one group to the other, from the ones with a shorter life to those
living longer.
Almost by definition, demographic data on life expectancy distinguish according to sex. Figure 1 and
Table 1 revealed important disparities between men and women which - since 1861, but above all
from the 1960s onwards - have grown to a 4.7 years longer life expectancy for women today. The
effects on the OADR value are considerable. Other than the future trailing growth in female life
expectancy suggests, the female share will rise from 52% for the first birth cohort in Figure 2 to 61%
for the cohort that retires by 2050.
This reinforces an important potential problem that lurks in the political determination of viewing
each man or woman as an independent individual. As far back as the Pension agreement of
December 1997, the Labour Foundation (national employer and union confederations) and the
government agreed on cutting back the survivor’s pension given to dependant relatives upon the
decease of a pensioner or an employee still actively building up pension entitlements. The major
pension fund, ABP, interpreted this two years ago as a halving of the survivor’s pension as a
percentage of the original pension. The argument is that women should be economically
independent and should take care of their own pension contributions. However, it should be said
that the income over which this is calculated for women is generally small as it is mostly based on
part-time work. In 2004 40% of adult 7 female employees, as opposed to 6% of adult men, earned
less per annum than the amount corresponding to the individual AOW. Pension savings can (and
will) be built up on a part-time income, but even if the 70% mark would be attained, the
accompanying pension incomes will amount to very little for households following the death of a
partner on a full pension. Most people are unaware of the unmistakable threat of future poverty
among surviving women.
7 aged 25 and over
AIAS - UvA
29