Higher earners should spend more: DNB

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People with high incomes should invest less in their pensions, so billions of euros would be freed for consumption, the Dutch Central Bank (DNB) says.

By putting less money aside for pension, billions of euros would be freed up for consumers to use to pay off their mortgage, reports the Financieele Dagblad.  People could also choose to consume more or voluntarily save up, suggests DNB's new retirement vision from Thursday.

Since the beginning of this year, a pension of over 100,000 euros cannot be deducted from taxes, but DNB wants these restrictions to be even lower. The bank argues that people with high income often have their own house, considerable financial power and more job opportunities to work later life., says fd.nl.