Increasing the Pensionable Age: What Changes Are OECD Countries Making? What Considerations Are Driving Policy?

Abstract

The average age of retirement used to be low in most countries due to numerous policies introduced 30 to 40 years ago which encouraged lower retirement ages. However, in response to the growth of the older segment of the population, increased life expectancy, the need for skilled workers, and the precarious financial state of public pension systems, pension reforms have been implemented in the U.S. and Europe, and are now geared towards improving employment rates for older workers, increasing retirement ages and pension eligibility. This paper surveys recent changes in retirement age and maps the changes that have occurred in the last decades using data from 34 OECD (The Organization for Economic Co-operation and Development) countries. This paper then reviews the arguments for and against these changes, the criteria for setting a certain retirement age, and the differences in statutory retirement age by gender, occupation, employment status, and other factors unique to particular countries. The purpose of this paper is to analyze current trends in terms of raising the pensionable age.

Organizational Hindrances to the Retention of Older Healthcare Workers

“…Population aging and legislative actions to extend working lives are examples of driving forces behind the increasing share of older workers on European labor markets (Axelrad & Mahoney 2017;Eurostat 2018), contributing to concerns about workplace conditions among governments, employers, and researchers (Fuertes et al 2013;Ilmarinen 2006;Naegele & Walker 2006;SOU 2013). Moreover, current and estimated labor shortages in certain sectors on the Nordic labor markets, for example, in the healthcare sector, potentially threaten the ability to provide high-quality services to citizens (Nordic Council of Ministers 2014).…”

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“…Накопленные свидетельства указывают на то, что повышение пенсионного возраста в последние годы стало наиболее распространенной мерой реформирования в пенсионной сфере. Международная практика последнего времени по повышению пенсионного возраста представлена, например, в [Горлин Ю. М. и др., 2017;Axelrad H., Mahoney K., 2017]. Так, по оценкам МОТ, в период с 2010 по 2016 г. в мире было принято 103 решения, направленных на более позднее предоставление гражданам права на пенсию по старости [ILO, 2017].…”

The Determinants of Effective Retirement Age – A Cross-Country Analysis

“…The outcomes of cross-country analyses are generally more useful in identifying general trends and making international comparisons, although this kind of study tends to underestimate country-specific factors such as culture, social norms and attitudes towards work and retirements. Examples of the cross-country approach are (Lamprianou, 2012) and (Axelrad & Mahoney, 2017).…”