Revealed by the Blidzeitung publication and later confirmed by the Ministry of Employment and Social Affairs, latest data over take-up of retirement at age 63 has relaunched the fierce debate of four years ago that had surrounded the implementation of this early retirement provision. Since 01 July 2014 this retirement provision allows employees with 45 years of employment contributions to retire on full pension from the age of 63 as compared with 65 previously. The provision has been a resounding success and four years after it was implemented more than a million have requested to retire at 63. The extra monthly cost of this provision is approximately €1.3 billion and employers are harshly critical of it. The Employment Ministry argues that the number taking advantage of the provision is matching its expectations.
A very costly and popular provision. Since 01 July 2014 employees with 45 years of employment contributions history can retire on full pensions benefits from age 63 as compared with 65 previously (c.f. article No. 8134). Short periods of unemployment can also count in the employment contributions calculations, as can the periods of time children are in education and time spent looking after close dependents. Given the gradual extension in the legal retirement age from 65 currently, to 67 by...
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