Forecasting health prior to state pension age – projections for the Netherlands 2040

Abstract

Abstract Objectives In many Western societies, the state pension age is being raised to stimulate prolonged working. In the Netherlands, the raise of the state pension age is linked to the remaining life expectancy at age 65 with a factor of 2/3rd, and is expected to be 68 years in 2040. It is not yet well understood whether health of the 60+ permits this increase. In this study, health of Dutch adults aged 60 to 68 is forecasted up to 2040. Methods Data are from the Dutch Health Interview Survey (HIS) 1990-2017 (N≈280.000) and the Dutch Public Health Monitor (PHM) 2016 (N≈460.000). Health is operationalized using binomial scores of 1) self-rated health and 2) limitations in hearing, seeing or mobility. Categories are: good health (healthy on both items), moderate health (healthy on one item) and poor health (unhealthy on both items). First, based on the HIS, health status in 5-year age categories was modelled up to 2040 using logistic regression analysis in R. Second, the growth factor from 2016 to 2040 was applied to the health level from the PHM 2016. Results In 2016, 63% of men aged 60-65 had good health, 25% had moderate health and 12% had poor health. Among women, this distribution was 64%, 22% and 14%, respectively. In 2040, the health distribution among men aged 60-68 is estimated to be 63-71% in good health, 17-28% in moderate health and 9-12% in poor health. Among women this is estimated to be 64-69%, 17-24% and 12-14%, respectively. Conclusions Health of Dutch cohorts nearing the state pension age in the future is estimated to remain the same or improve up to 2040. This development in health is not an obstacle to raising the state pension age. However, due to the increasing state pension age and the baby boom generation reaching age 60+ in the coming years, the absolute number of people aged 60+ in poor and moderate health that participates in labor will increase. Policy aiming at sustainable employability will therefore become increasingly important. Key messages Health of Dutch cohorts nearing the state pension age is estimated to remain the same or improve in the future. The development in health is not an obstacle to raising the state pension age. Although health is estimated to remain the same or improve, the absolute number of people aged 60+ in poor and moderate health that participate in labor will increase due to an aging population.