Do European employers support later retirement?

Abstract

Purpose -This paper aims to examine whether employers' opinions and expectations regarding workers' retirement age are in line with the ideas of the EU-Member States' governments to increase the participation of older workers and to postpone the transition from paid work into retirement at the end of the labour market career. Design/methodology/approach -A comparative survey was used among employers from five European countries: Greece, Hungary, Spain, The Netherlands and the United Kingdom. Findings -The authors found that most employers are reluctant in supporting later retirement. Part of this reluctance is the result of the perception that an ageing work force is a burden rather than a boom to organizations. Originality/value -This study shows that there still is a discrepancy between the aims formulated at the level of the European Union and member state countries with respect to stimulating the labour force participation of older workers and the attitudes of individual employers. In particular, the fact that employers perceive alternative solutions to the challenges of an ageing and shrinking workforce, other than delaying retirement, suggests that most employers will not be a major driving force for extending the working life.

Employment, late-life work, retirement, and well-being in Europe and the United States

“…Specifically, from a public finance perspective, phased-in retirement will likely increase tax revenues and reduce expenditures on pensions and retirement benefits. Moreover, while European employers view older workers as a burden (vanDalen et al 2010), late-life employees are valuable to organizations as they have experience and competence. Burtless (2013), for example, documents the pay premium that latelife workers receive compared to their younger counterparts in the U.S., suggesting that older workers are more productive.…”

Who fears and who welcomes population decline?

“…4 Active government involvement in matters of fertility is absent, although members of parliament are constantly pleading for a policy to make it easier for people to combine work and family. Employers are concerned about the labor market consequences of population decline, but when it comes to counteracting this development, the large majority of Dutch employers do not support pronatalistic policies, and mainly seek economic solutions (see van Dalen et al 2010).…”

Seeking Resources: Predicting Retirees' Return to Their Workplace

“…One way to address these projected shortages is for older people to come out of retirement and re-enter the workforce (Anderson and Hussey, 2000;Baxter, 2001;van Dalen et al, 2010). The challenge for employers is how to encourage retirees to return.…”