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Benefits for employee and employer when continuing to work after pensionable age

Retirement is a choice. You can stop, you can also keep working. And more and more self-employed people choose to continue working even after their retirement. This is also shown by our poll onLinkedIn. Less than half of the respondents said they wanted to stop working. 32 Percent said they definitely wanted to continue working, 22 percent didn't know yet.

14 Maart 2024
Reading time 3 minutes
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14 Maart 2024
Reading time 3 minutes
Share this article

Attractive option to solve the labor shortage

Given the tightness in the labor market, it is interesting not to lose sight of the group of pensioners. In Grey Potential, a report that ABN AMRO released last February says there is an enormous untapped potential. Over the next 10 years it concerns more than 900,000 employees. These are people who are willing to continue working part-time even after their 67th.

At the moment there is a shortage of 450,000 full-time employees and it is expected that those shortages will increase further. That shortfall can to a large extent be absorbed by retirees working part-time.

Arguments for continuing to work

Many retirees indicate that they want to continue working if the following two conditions are met: job enjoyment and flexible working hours. Financial motives also play a role, but to a lesser extent.

And yet working past the pensionable age is financially attractive. Because they no longer have to pay the AOW contribution, employees who have reached pensionable age keep more net pay. An interesting option for self‑employed people (zzp'ers) who have not saved for their pension and want to further supplement their AOW in this way.

Interesting option for employers

For employers, it is good to consider how this group can be of added value in solving staff shortages. Because a large portion of the employees who want to continue working have indicated a preference for part-time, it is useful to map out ways existing tasks can be divided to create different part-time positions.

It is also good to start the conversation with self-employed people (zzp'ers) or employees who are approaching retirement age. Many employees who are about to retire are not aware that continuing to work is also an option. When an employer makes this topic open for discussion, it is possible for both parties to continue the collaboration, even from the state pension age.

(Financial) benefits employer

Not only does continuing to work after retirement have advantages for an employee; an employer also reaps the benefits. There is no longer any need to pay employee insurance contributions. This concerns, for example, the WW and the AOW.

Not only financially are there advantages to working with people above the retirement age. Research by TNO shows that there is less absenteeism in the workplace among older people than among younger people. From another study , from a temp agency that specializes in placing people who are eligible for a pension, older employees are also less often sick. Of their secondees, 80 percent were never sick in a year.