Prolongation of Working Life and Its Effect on Work Disability and Retirement Income: Evidence from Register Data in the Netherlands

Using data from UWV and CBS, the study analyzes effects based on gender, income, employment sector, and health status.

 Disability applications among those over 60 have doubled since these policy changes. Lower-income employees are at higher risk of disability after the abolishment of early retirement, particularly in physically demanding sectors such as agriculture, construction, industry, transport, and trade. In the public sector (government, education, and healthcare), the increase in statutory retirement age has led to more disability applications. Chronic illness increases disability risk when early retirement is abolished but does not appear to affect applications under the higher statutory retirement age. Disabled employees experience a 10% income decline before and after retirement, regardless of early retirement eligibility.