Planned Retirement Timing in Europe: Are Europeans Adapting to the Policy of Extending Working Lives.

Jana Mäcken,Laura Naegele,Moritz Hess,Wouter De Tavernier,Lena Becker

doi:10.3389/fsoc.2021.691066

Abstract

As populations are ageing concerns regarding the sustainability of European welfare states have come to the forefront. In reaction, policy makers have implemented measurements aimed at the prolongation of working lives. This study investigates weather older workers have adapted their planned retirement age, as a result of this new policy credo. Based on data from Survey of Health, Ageing and Retirement in Europe (SHARE) the analysis shows an increase of the planned retirement age (1.36 years) across all ten European countries investigated, albeit with country-specific variations. Variations on the individual level can be detected in regard to gender, education and self-reported health status.

Highlights

Population ageing with its increasing number of older people has resulted in concerns that the financial future of many European welfare states is in jeopardy since the late 1980s (Harper, 2015)
In response policy makers in many European countries have implemented reforms aimed at delaying retirement and extending working lives
We find that the increase of the planned retirement age is stronger for women than for men indicated by the positive interaction effect of cohort and gender

Summary

Introduction

Population ageing with its increasing number of older people has resulted in concerns that the financial future of many European welfare states is in jeopardy since the late 1980s (Harper, 2015). The fear is that welfare expenditures for a growing number of older people have to be financed by contributions from a shrinking number of younger people These concerns are raised with regards to the sustainability of health care, long-term care as well as pension systems. In response policy makers in many European countries have implemented reforms aimed at delaying retirement and extending working lives They have increased state pension ages, closed early retirement options and invested in the employability of older workers (De Tavernier et al, 2019). It seems that these reforms have taken effect as actual retirement age as well as older workers’ employment rates are increasing; from different starting points and with different paces (Ebbinghaus and Hofäcker, 2013). Today’s pensioners have often not felt the full impact of the reforms (yet)

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Methods

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Conclusion