Ageing and Employment Policies: Netherlands 2014
Working Better with Age
Given the ageing challenges, there is an increasing pressure in OECD countries to further boost the employability of the working-age population over the coming decades. This report provides an overview of policy iniatives implemented over the past decade in the Netherlands and identifies areas where more should be done, covering both supply-side and demand-side aspects. To give better incentives to carry on working, the report recommends to promote longer contribution periods in the second-pillar pension schemes, and ensure better information and transparency of pension schemes, with a special focus on groups with low financial literacy. On the side of employers, it is important to progress towards more age-neutral hiring decisions and wage-setting procedures with more focus on performance and less on tenure and seniority. To improve the employability of older workers, the focus should be to promote training measures for older unemployed which are directly linked to a specific job. The large diversity in municipal "Work-First"programmes should be utilised in designing mor effective activation policies targetted on those at risk of losing contact with the labour market.
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Assessment and key recommendations
Like many other countries, the Netherlands is facing the challenge of a rapidly ageing population. The number of those aged 65 and over, measured as a proportion of the population aged 20-64, is projected to double: from 27% in 2012 to 52% in 2050. This places the Netherlands mid-range among OECD countries in terms of the old age dependency ratio – in 2010 as well as in the 2050 projection.
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