[Senior Trend] Policies to Encourage Senior Social Participation in the Netherlands

European Seniors Stories⑥

Various countries around the world operate policies and programs for seniors. While the elderly welfare and trend cases of Japan, which is already a super-aged society and geographically close to Korea, are relatively well known, the case of the Netherlands is astonishing. According to the IMF (International Monetary Fund), the Netherlands ranks 10th in nominal GDP per capita by country in 2024, with $67,984, making it a country with strong economic power. Korea ranks 29th with $36,132. The elderly poverty rate is in the 1% range, the lowest in the world. In addition to a special old-age pension system, the Netherlands ranks high in creating environments, employment, and education for the elderly. More than 80% of the population aged 60 and over have received higher education, establishing a lifelong learning system and achieving educational universality.

When talking about the Netherlands, basic pensions and retirement pensions cannot be overlooked. Like other countries, retirement pensions are individually determined based on the amount contributed according to income levels over a certain period. However, the “Old Age General Pension (The Algemene Ouderdomswet, AOW)” applies to all citizens. Anyone who has legally resided in the Netherlands for 50 years can receive this basic pension from age 65. It corresponds to Korea’s basic old-age pension. It is not a pension received only by those who have paid insurance premiums or differentiated according to the amount of insurance premium payments. This is based on the social principle that the elderly should maintain a basic standard of living. It does not matter whether one had good or poor income in the past, or had periods without paying taxes due to illness or unemployment. For those living alone, the amount is about 1.5 million KRW per month, and for couples living together, about 1 million KRW per person. Although currently paid from age 67 and the eligibility age is expected to be delayed in the future, it is an important element of elderly welfare in the Netherlands.

It is not an unconditionally generous society. The Netherlands is more proactive than any other country in linking jobs for the elderly and encourages social contribution, i.e., volunteer activities. Early on, each region created jobs for the elderly and provided computer education and vocational training for seniors. This was based on the need to develop the capacity to work even if jobs were available. “HOVO (Hoger Onderwijs voor Ouderen)” is representative. It is implemented in more than 20 universities, including famous ones like the University of Amsterdam. Only those aged 50 and over are eligible to enroll, and the courses, which last 10 weeks, are at the university level, offering lectures in arts, culture, society, science, and other fields. This created conditions for lifelong education to take root.

Additionally, local government labor income centers focus on the elderly and low-educated, categorizing the unemployed into four stages and providing customized vocational training programs. It was judged that their re-entry into the labor market has great advantages in terms of social integration. In the early days of introducing lifelong learning systems in companies, tax benefits such as employment insurance refunds were provided. Although this system has now disappeared and shifted to a voluntary operation method, the number of companies providing lifelong learning services continues to increase. High productivity is important for strengthening corporate competitiveness, and it was necessary to have workers who continuously learn alongside the introduction of cutting-edge technology.

Meanwhile, there is an organization that dispatches retirees annually to small and medium enterprises in developing countries worldwide. This is a non-profit organization called PUM (Netherland Senior Experts). It connects retirees’ decades of experience and know-how to small and medium enterprises. Now in its 46th year, PUM is 100% funded by the Dutch government, with the budget mainly used for the airfare of retired experts. PUM not only provides training for dispatch work but also plays a role in sharing knowledge and know-how through seminars. Senior volunteers spreading expertise in agriculture, marketing, human resource management, and more in countries such as the Philippines, Bangladesh, and Ethiopia gain fulfillment, health, and relationships by working again.

What is important in Dutch elderly welfare is that it aims to improve quality of life and proactively prevents ending life in hospitals, which have high welfare costs. According to the OECD (Organisation for Economic Co-operation and Development), as of 2021, the proportion of deaths occurring in hospitals in the Netherlands was 23.3%, the lowest among OECD member countries (Korea is the highest at 70%). The Dutch Ministry of Health, Welfare and Sport has stated, “The government’s goal is to support people to live as long as possible where they have been living.” They consider dying in hospitals a tragedy both personally and socially, and also a burden from an insurance perspective. In addition, various programs and policies are implemented to encourage the elderly to actively participate in society, contribute, and maintain relationships with friends and family.

Discussions on extending the retirement age have been intense in Korea this month. It is regrettable that the focus seems to be only on the “economic reason” of aligning with the start of the national pension. Shouldn’t we look at and solve our problems from various perspectives such as social integration, like the Netherlands?

Lee Boram, CEO of Third Age