The life course regulation came into effect in the Netherlands in 2006. In the first year, only one in twenty employees participated in this scheme. Most participants have a high level of education. Half took part to be able to retire early.
Salary savings schemes more popular
Over 340 thousand employees with a job of at least twelve hours a week participated in the life course scheme in 2006. This the equivalent of 5.5 percent of employees in the employed labour force.
With a participation rate of 43 percent of employees, the older salary savings scheme is much more popular. Nearly two-thirds of employees who participate in the life course scheme indicated that they had previously participated in the salary savings scheme. Employees are not permitted to take part in both schemes at the same time.
Participation in life course regulation and savings scheme, 2006
Life course regulation mainly for the higher educated
Relatively more higher educated employees participate in the life course scheme. Participation in this group is 8 percent, compared with less than 4 percent for those with lower education levels. More older than younger employees take part, and more men than women. In addition, more full-time employees and employees with a permanent contract take part than average.
Participation in life course regulation by personal characteristics, 2006
Most participants want to retire early
Half of participants in the life course regulation take part to invest in early retirement. Nearly three in ten report that they do not know what they are saving for. Six percent want to use it to finance parental leave in the future and 5 percent want to use it for a sabbatical.
Hardly any people save for care, study or voluntary work
Leave to care for a sick relative, to study or to do voluntary work is not apparently a reason for many people to take part in the life course scheme. This is probably because it is difficult to predict whether such leave will be necessary in the future.
Reasons for participating in the life course scheme, 2006