Most pay-as-you-go pension systems, like the Belgian one, have increased or plan to increase their legal retirement age (LRA) to address the financial consequences of ageing. Although the success of these policies is ultimately determined at the labour market, little is known about the effects of higher LRAs at the firm level. This IZA study finds that the wages and hours worked of the older workers are virtually unchanged, although firms employing older workers tend to reduce their hirings, especially of younger workers.