Higher productivity should either lead to more free time, or an improved quality of life (or a mix of both). If one gets to retire later, but they get to experience a proportionally better retirement, then that could also be acceptable.

Worth noting that wages in the NL do generally go up with inflation, people tend to work part-time quite often (giving them more free time before retirement), and the price of luxuries tends to come down over time (except home prices…)

So quality of life generally tends to go up with increased productivity.