Dutch expats are likely to lose part of their state pensions, and state partner pensions will also be cut, the Telegraaf daily reported on Thursday.

The cabinet is faced with steeply increasing pension costs because of the global financial crisis and the aging Dutch population.

Social Affairs Minister Piet Hein Donner has to make 400 million euros of cuts in next year's budget, which will be announced on 15 September. Sources close to the ministry have confirmed the press reports.

All Dutch over-65s are entitled to a state pension; if they have an unemployed partner who is younger than 55, the pension is increased. This so-called "partner pension" was scheduled to be scrapped by 2015, but that will be brought forward by five years.

Expatriates lose out
A recent 26 euro a month increase of pensions to compensate for reduced purchasing power will also be abolished. But this will be made up for by changes in the taxation of pensions. Expatriate Dutch pensioners will not qualify for this tax improvement, though.

Other cuts in the Social Affairs budget will affect funds reserved to help the unemployed back into the labour market. The disappearance of this "reintegration fund" is expected to yield 80 million euros.

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