People who take early retirement will have to pay extra tax from 2011, the Telegraaf reports today. The paper says the three parties involved in drawing up the new coalition accord have reached agreement on the measure.

The aim is to encourage people to stay in work. The pension system was one of the biggest problems facing the formation of a new cabinet.
One of the three parties, Labour, wanted to introduce an extra tax for wealthy pensioners. It said people with a private pension of over €15,000 a year should still be required to pay state pension premiums even though they were over 65 themselves.
The plan – which now appears to have the backing of Labour’s Christian Democrat and ChristenUnie partners – would mean only those who stop working before the age of 65 and have a private pension of more than €15,000 would have to pay the extra tax.