Easier to extend employment contracts

However, pensioners
lose pension wealth if they postpone their decision to draw old-age pensions beyond the age
of 60 (OECD, 2015b). Current rules cut pension benefits by up to two thirds if pensioners on
early retirement enter a new employment relationship.

Employers pay unemployment and
pension insurance contributions when they employ pensioners who have reached the
pensionable age or receive a full pension, although these workers do not accrue the
corresponding entitlements. The government is considering steps to correct this.