Raise the state pension age faster? Then ease the heavy occupations scheme proportionally
Publication date: 2 March 2026
Since the coalition proposed to accelerate the increase in the state pension age (“AOW”), various mitigating or alternative measures have been suggested from different sides. In my view, however, a simple and above all rational solution has not yet been mentioned: if the AOW age is increased by one year, the benefit period under the heavy occupations scheme should be extended by four months per one year.
Current system
Under the current system, the AOW age increases by 8 months when the remaining life expectancy of a 65 year old rises by 12 months. The RVU exemption threshold is linked to the AOW age. Starting 36 months before the AOW age, an employer may provide an early retirement benefit of up to €2,657 per month (amount applicable 2026). No RVU levy is paid by the employer on this benefit. The RVU levy currently amounts to 57.7% and is scheduled to increase to 65% by 2028.
The problem
The AOW system risks becoming financially unsustainable due to demographic ageing: a shrinking working population must finance pensions for a growing number of retirees. This demographic and intergenerational challenge cannot be denied. From a macroeconomic perspective, the new government’s plans are therefore understandable. What is missing, in my view, is adequate recognition of the fact that not all employees are able to continue working longer and longer. Such recognition did emerge in 2024, when the government and social partners introduced a structural heavy occupations scheme. It is precisely here, I believe, that the solution (once again) lies.
Easing the heavy occupations scheme in case of a faster increase in the AOW age
My proposal is as follows: If the AOW age increases by 12 months (instead of the current 8 months), the maximum duration of the RVU exemption should be extended by 4 months accordingly. The table below uses an (intentionally exaggerated) hypothetical assumption that life expectancy increases by one full year every five years. In reality, the current expectation is closer to one year per ten years.
A proportionate and appropriate measure
The level of the RVU exemption threshold is already based on and linked to the AOW benefit. Easing the heavy occupations scheme therefore aligns not only temporally, but also economically, with a faster increase in the AOW age. Whether an occupation qualifies as “heavy” remains a matter for the social partners to determine (subject to validation and objectification), with external validation in collective labour agreements provided by the TNO Centre of Expertise on Heavy Work, and with the legally established signal threshold of 15,000 remaining relevant.
