Eight in ten Belgians would like to retire before their 65th birthday, but only four in ten effectively do so, an annual pension survey by HR service provider Acerta shows.
From 1 July, employees can start building up their pension bonus if they continue working beyond their earliest possible retirement date, but not everyone is convinced by this system as about 80% of people want to retire before age 65, Acerta found.
At the same time, most are realistic: nearly three quarters (73%) expect they will have to wait at least until their 65th birthday, while almost half (47%) even assume they will not be able to retire until after their 67th birthday.
Currently, four in ten workers retire before the age of 65, but the proportion of employees retiring early is higher than average in some sectors: in construction, 60% retire early, but the number is also higher than average for logistics and transport (58.67%), hospitality (56.1%) and wholesale & retail (51.85%).
Construction workers in Brussels. Credit: Belga/Maite Dequinze
On the other hand, the social profit sector, with hospitals and residential care centres, only three in ten retire before 65. "The sectors with a high outflow before 65 are also those where people start their careers early, which makes an early outflow logical," said Ellen Van Grunderbeek, legal expert at Acerta Consult, in a press release.
"They are also sectors with many workers. But the fact that so many social profit employees stay on the job longer than average is striking. This is because social profit employs a lot of women and they do not retire as early as men," she added. "Only 38% of female Belgian workers retire before the age of 65."
Employers can motivate people to work longer in various ways, such as by offering a workable job, which employees also see as extremely meaningful, Van Grunderbeek explained. "Sustainable careers that focus on continuous development, deployment and growth, where it is evident that roles and functions change as one's career progresses, will have to become the norm. This can bring the desirable and actual retirement ages closer together."
Self-employed people retire earlier
Among the self-employed, almost two-thirds (64.5%) retire before the age of 65 – significantly more than among employees. The average retirement age fell slightly, to 63 years and a month and a half.
Sectors with heavy physical work are bringing down the average retirement age. In 2023, 84% of self-employed workers in the construction industry retired before 65. This, however, is offset by the liberal professions (such as lawyers, artists and journalists), which retire much later: there, only 23% retire before 65.
"To retire early, you have to start your career early. This is slightly more common among the self-employed than among employees. For example, those who retire at 62 or 63 in 2023 have already started working at 19, 20 or 21," said Mieke Bruyninckx, legal expert at Acerta Social Insurance Fund.
She explained that that works out sooner in construction than for doctors or lawyers, for example, who have longer training periods.
Lawyers. Credit: Belga / Antony Gevaert
Now, Acerta is looking forward to the effect the pension bonus will have on these figures.
"With a career of fewer than 43 years at the earliest possible retirement date, a first extra year of working will get you about €3,900, a second year added is good for another €7,800 bonus and a third year will bring in another €11,700," Bruyninckx said. "All together, it could therefore be about €23,565."
Those with at least 43 years on the job immediately accrue the highest bonus of €11,700 per year, bringing the total amount of this group to €35,347. "The pension bonus is expected to trigger a behavioural effect for those with a career of 43 years or more, and people will at least reconsider their pension plans."
Whether the self-employed with less than 43 years of career will be convinced to postpone their retirement remains to be seen, she explained. "Especially since social security contributions will also have to be paid, meaning they will pay their own bonus in year one."
Acerta relies on data from 570,000 employees and 190,000 self-employed people.
