Belgium’s pension scheme has been reformed, with a bonus being offered to those who work up to three years past retirement age and stricter rules regarding getting to the €1,500 monthly minimum pension
The federal parliament has approved a number of changes to Belgium’s pension system, which will take effect on 1 January 2025. Changes include a bonus for those who work past retirement age and tougher regulations regarding the minimum monthly pension payments.
Pension bonus: More money for working longer
Anyone who works longer than the legal retirement age can now rely on a bonus – up to nearly €34,000 for the most ambitious. This new bonus also applies to those who work part time, those with a right to an early retirement and people who are self-employed.
The bonus increases with every day past the legal retirement age that is worked, up to three years. The bonus applies to everyone, though people who have worked for 43 years or more will earn bigger bonuses. People who have worked part time will get a pro-rated bonus.
The highest possible bonus is €33,975, earned by those who have worked full time for 43 years and three years past retirement age. The bonuses can be paid out in one lump sum a few months after retiring or in instalments; it’s up to the retiree.
While the bonus officially starts on 1 January, there is a transition rule arranged for anyone retiring this year after 1 July. If you have worked past your legal retirement age, you will begin building up the bonus on that date.
Minimum pension: Number of days worked
Six years ago, the government ushered in a minimum monthly pension of €1,500. Thanks to inflation, that figures is now more than €1,600. This minimum has applied only to people who have worked 30 years full time or more years part time. Anyone not reaching that has received a pro-rated minimum pension.
Those 30 years included periods of unemployment. The new pension reforms cancel that, meaning that the employment must be actual work days and not days when unemployment benefits were received.
When can I retire?
The legal retirement age in Belgium is currently 65. But don’t start planning that trip to Florida yet: Next year retirement age rises to 66, and it rises again to 67 in 2030. It is possible to retire early, but there are financial strings attached. Those who work beyond their legal retirement age now have the right to a bonus.
Belgians can calculate their expected pensions on the federal government’s pension website , in Dutch, French or German.
However, the number of work years required is significantly reduced: The rule is that people must have worked 5,000 full-time days to receive a minimum pension. An average work year consists of approximately 250 days, which works out to 20 years of full-time work.
Maternity/paternity leave and official leave to care for a loved one are also included as work days, as are periods of official temporary unemployment.
These rules apply to anyone 54 years of age or younger as of 1 January. For those who are older, there is a transition period, with requirements for the effective number of days worked lower. The number of days required will depend on the year of birth.