IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Redistributive impact of reforming the old-age pension system in Belgium

Listed author(s):
  • Maes, Marjan


    (Hogeschool-Universiteit Brussel (HUB), Belgium
    Katholieke Universiteit Leuven, Belgium)

The effects of three reforms of the Belgian old-age pension system were examined on retirement behaviour, government budget and income distribution of the retired. The first reform adjusts benefits with 5% for each year of retirement deviating from age 65 in the window 60-70. The second reform adjusts benefits with a lump sum amount of money for each year of retirement deviating from 65. In order to draw comparisons, the lumpsum amount is chosen such that, under the hypothesis of no labour supply adjustments, it has the same budgetary impact as the first reform. The third reform results of the recent implementation of the “pension bonus” in the Belgian old-age pension system. The belgian government wants people to work longer but does not penalize early retirement for reasons of political economy. Pension benefits are increased by 300 euro on a yearly basis for each year of retirement after age 60 in the window 60-65. The bonus applies, as the other two reforms, only to the bismarckian part of pension benefits, not to the means-tested assistance. The first and second reform increase retirement age with 0.9-1.8years and enhance financial sustainability of the system, contrary to the third reform that increases retirement age with 0.3-0.4 years. The first reform is not only the one that increases the size of the cake most but is also the one that divides the cake in most equal slices. Finally, it was shown that the impact of reforming the old-age pension system may be limited for individuals that have the prospect of receiving occupational pension wealth.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2008/19.

in new window

Length: 50 pages
Date of creation: May 2008
Handle: RePEc:hub:wpecon:200819
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hub:wpecon:200819. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Janssens)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.