The ‘Unaffordable’ Older Population
A conundrum universally agreed is that growing proportions of older people
everywhere will increase the need for social spending within limited national resources, regardless of the country under consideration. The growing demands
for public spending on pensions, health
and social care
systems, in turn, suggest sustainability
concerns in the context of national budgets. Multi-faceted concerns arising directly from the growth of older populations occur against an even broader and more complex backdrop. That includes fewer ‘working age
’ people to contribute to national tax
bases; the transition from industrial to post-industrial and from national/local to global labour markets
; large and still growing proportions of women in employment; and, a singular lack of adequate social care
options across the lifecourse in most affluent countries. What remains contested, however, is whether earlier pension promises
for an
ageing population
are truly ‘unaffordable’ or ‘too expensive’ for welfare states
to honour (see Higgs and Gilleard
2010). To date, societies have been able to afford their increasing older populations and changing dependency ratios
through changes in labour market participation
(particularly the influx of women workers) and efficiencies that have increased productivity
at work. Perhaps a more pertinent approach than the one currently in vogue would abandon assertions of unaffordability and instead focus on what policy changes are required to ensure a dignified and adequately resourced later life for older people
.
All the foregoing suggests the need for careful
policy planning and attention to variation and detail. Yet, as earlier chapters have demonstrated, policymaking around extending
working life
has tended to encompass simplistic, one-size-fits all approaches that ignore the realities that shape predictably different lifecourses of men
and women, or of older people
who experience work-limiting poor health
or disabled versus healthy individuals. Despite the superiority of carefully designed
social
policies
, the neoliberalist political agenda
in many countries has foreclosed progressive action. The transcendence of neoliberalist tendencies in most countries’ political economies has instead seen governments committed to reining in public sector spending, even if it means dismantling traditional
social
insurance and safety net
programmes. This is consistent with beliefs about the limits on state intervention typical of the neoliberal
turn and has contributed to tax
cuts
and deregulation
, stagnant wages
, struggling national labour markets
, austerity and a departure from universalist social
policies
, all culminating in increased income inequality and insecurity for individuals. It is no surprise that the main idea gaining the most traction and dominating international policy circles is the ‘live longer, work longer’
solution (OECD
2006).
Live Longer, Work Longer
Three intertwined issues undergird the logic of the ‘live longer, work longer’ catchphrase and seem to hint at the potential for the relatively straightforward idea of extended working lives to resolve the mismatch between the demand for and the supply of resources for growing numbers of older people. First is the optimism engendered by the triumph of human ageing–an ‘average person’ in affluent countries now lives a longer, healthier life than at any other time in human history. To enthusiasts for extending working lives, this suggests that there is an increased individual capacity for working longer that can, for most older people, be taken for granted. Second are constraints imposed by attempting to balance state budgets and manage social policy spending under current national fiscal and political circumstances. Many affluent countries are experiencing economic challenges, including low rates of growth accompanied by national debts and deficit spending, with increasing shortfalls expected for the future. Tax cuts in many countries have led to reduced resources in national treasuries. Inexorable increases in the cost of providing health and pension benefits are linked to the growing tranche of older people in national populations. In light of the apparent disconnect between earlier social policy promises and states’ fiscal capacity to meet them (at least in the eyes of extended working life proponents) makes limiting pension promises for current and future retirees seem prudent. A third component of the ‘work longer’ argument focuses on whether pension systems designed for 20th century demographics and labour markets are suitable for current and future older people. After all, pension systems in most countries were initially designed for the male breadwinner/female homemaker model of industrial economies when life expectancy was significantly lower than it is now, and when larger families (and the assumption of the availability of unpaid caregivers within them) were the norm. Since then, the influx of women into paid work, changes in family forms, and the transformation to post-industrial economies have left most countries with health, social care, and pension systems that have failed to fully ‘keep up’ with the times. Although many other factors play into the ‘problem’, these three themes together suggest that the most obvious policy choice should be to keep workers in employment to older ages, delaying the age of entitlement for pensions benefits (and years of receiving them) to mitigate the pressure on national budgets as populations age. Proponents regard extended work as the most obviously desirable solution to the conundrum presented by growing costs associated with ageing populations.
Yet, as Ogg and Rašticová in Chap.
1 have observed, the extended work solution is neither as simple nor empirically as appealing as it appears at first glance. Further, the real world circumstances in the countries where the single prescription of extended work must be applied vary substantially. Krekula and Vickerstaff further underscore several fundamental problems of ‘live longer, work longer’ at the theoretical level. As they point out in Chap.
2, the imprecise and evolving use of the language that frames policy debates assumes that privileged people and men
are representative of the normative experiences implied by the notion of working longer. This has foreclosed important avenues of discussion about extending work for people with much more varied lifecourse trajectories
than are acknowledged by policymakers
.
Challenging some of the key assumptions embedded in the conflated work longer/delay retirement argument points to the importance of the availability of high quality data for evidence-based decision-making. In the third chapter, Addabbo, Gstrein and Siemieńska discuss some of the untapped potential for policymakers and researchers alike to capitalise on existing data and use various research techniques to tease out the implications of extended working lives for individuals with different social characteristics. Despite the range of datasets Addabbo and colleagues identify, weaving together comprehensive data that could unpack the interconnectedness of women’s and men’s differing lifecourses (such as employment histories, health statuses and caring responsibilities) in conjunction with representative organisational data (that simultaneously accounts for the practices and preferences of employers) is not currently possible. In fact, the lack of systematic data about employer behaviour, particularly because so much is proprietary and unavailable to either policymakers or researchers, is a serious impediment to an empirical understanding of how and which older workers could ‘work longer’ and for which particular employers. Quantitative data from representative national and international samples, particularly when from time series data over long periods, have noteworthy utility for understanding the interactions among policy effects, organisational behaviour, and individual outcomes. But representative longitudinal studies are relatively rare and very expensive, and often lack the data to flesh out nuances and distinctions among people’s lived experiences. To supplement quantitative data, qualitative research is also needed for more refined understanding of the influences of family circumstances, employment trajectories, health statuses and caring histories under particular work and pension policy regimes for later life outcomes.
Such data limitations operate in tandem with policymaking that overlooks even the already well-documented (in)capacities of many disadvantaged subgroups of older workers and the precursors to low incomes for many retirees. To restate the obvious, this is especially the case for individuals (mostly women) with heavy caring responsibilities, workers in physically demanding and stressful occupations, people with impaired health and physical capacities, those in precarious and low paid employment, or whose careers have been spent in vanishing industries. Vulnerable workers have the deepest stake in adequate state pensions provided at an appropriate age, because they among all workers have the least capacity to generate employment alternatives. Yet rather than protecting that group best, in most instances the sweeping introduction of older ages of eligibility for pensions without readily available employment for older workers has and will continue to hurt vulnerable sub-groups of older people the most.
The fact is that policies are made (whether lacking data or ignoring it) by building on or departing from existing policy regimes that have established the ‘ground rules’ or starting points for individual expectations and later policy innovations. In confronting similar problems, policy learning can and does occur across regions and nations, which emphasises the value of policy toolkits
discussed in Chap.
4 by Duvvury and colleagues. They highlight processes likely to generate good practices
, committed to making practices and outcomes more transparent, especially if working longer must be a dominant approach for the future. Combining insights gleaned from data analysis and policy exemplars can provide firmer empirical ground for estimating the effects of policy choices
associated with extended working lives, documenting how policies and individuals’ lifecourses
and workplace experiences intersect, and developing policies and practices to improve income security
in retirement for more people with varied lifecourses and social characteristics.
Macro, Meso and Micro Perspectives
Debates about working longer unfold very differently for actors with different interests and institutional locations, (transnational institutions
, governments, employers
, individuals) including the varied perspectives and realities of actual people being required to meet new expectations to ‘live longer, work longer’. How to balance the realities of older citizens’ experiences, the changing structure of labour markets, and the increased demands
on social, health
and pension systems
they represent is far from settled, not least because the debates occur in different national contexts and individual circumstances. For example, at the macro level
, transnational actors
ranging from the World Bank to NGOs
to the European Union and the OECD
, weigh in with advice on targets and expectations for extending work in countries within their orbits of influence. The advice on offer is often provided quite generically with a dogmatic commitment to increasing retirement ages
—while mainly ignoring the very tangible cross-national, multi-cultural and regional barriers to accomplishing extended work goals without causing genuine hardship among defined groups of older people
. National policymakers
, responsible for enacting policies to benefit citizens of all ages, must simultaneously attempt to reconcile the fewer workers/shrinking tax
base + more pensioners = higher pension
spending/budget strain equation
, while weighing also how policy choices
shape electoral politics
. Private employers
have very different concerns that shape, at least indirectly, the
ageing population
/extended working lives/adequate benefit provision nexus, since their activities structure labour markets (Mulders et al.
2014). Differing corporate/private sector
concerns on extended work and pensions are no surprise, since corporations have fiduciary responsibilities to generate profits to ensure shareholder investment returns and to expand business, not to provide social rights. Except in countries such as Poland
, France
, and Finland
, where trade unionism and/or social partnership is still strong, meso level
engagement in extending work/delaying retirement is mostly episodic and at the margin of debates. Households and individuals, too, have varying perspectives on the ‘best’ approach to extend working lives (or whether extended work is possible at all), shaped by factors ranging from the age, gender, education, health
status
and employment conditions of individuals located within the constraints of individual and family resources and national labour markets
and policy regimes. There is rarely individual level consultation on the merits of macro level
policies or meso level
practices that will be applied to improve the employment prospects of
older workers
(see Chap.
2).
Current policy debates fluctuate in their terminology, whether the frame is ‘extending
working life’
or ‘delaying retirement’, an issue to which we return later in this chapter. For now, the starting point of our argument is that conflation of the two phrases as nearly synonymous is based on mistaken assumptions that policies reflecting one concept could be the same for the other—despite very different conceptual connotations of each proposed policy remedy (see also Chap.
2). Treating the goals of delaying retirement and extending work as interchangeable obfuscates serious policy considerations; masks the potential, problems, and inequalities inherent in each approach; and mystifies and muddies important debates that should occur within the ‘live longer, work longer’ construct. After all, ‘extending work’ sounds somewhat more positive than its more negative and less desired ‘delaying retirement’ counterpart. We argue, instead, that treating delayed retirement
and extended work as more or less equivalent is a conceptual error, because the goals logically associated with each are different. Acknowledging the distinctions matters, as it is important for researchers to be precise and for policymakers
to be more nuanced about policies that so fundamentally affect individuals’ later lives. To be sure, concerns associated with ‘extending work’ and ‘delaying retirement’ overlap somewhat, but they are decidedly not identical.
Take the ‘delaying retirement’ construct and the different interests this particular policy approach encompasses. Delaying retirement is a national social policy
choice
that imposes new limitations on when individuals are entitled to full state pensions. State-mandated retirement delays
are designed mainly to serve state fiscal interests, rather than those of individuals who must either postpone their transition from work to retirement, or suffer permanent financial penalties. As for employing organisations, there is no robust evidence that employers
are particularly eager to postpone retirement for most of their employees
(see for example Mulders et al.
2014), although the shrinking number of employers still offering
defined benefit
occupational
pensions
would also see a fiscal savings
via later retirement
. The interests of the state do not necessarily align with the interests of the organisations or individuals affected by delayed retirement
, providing a plausible rationale for casting the issue more as a matter of extending work than delaying retirement.
In contrast to the ‘delay retirement’ approach, careful conceptualisation of ‘extending work’ requires policies that could actually support individuals, with a wide range of employability characteristics, working to older ages. Effective policies for extending working lives require distinctive approaches that address the realities of current and future labour markets and the supply and demand for older workers (including especially job opening/skills mismatches), the quality of work conditions and wages, the health and physical capacities of potential older workers, and the willingness of organisations to employ them. Further, effective extending work policies would have to take into account the varied lifecourses of individuals in different types and sectors of employment, the normative expectations surrounding unpaid carework in national cultures, new family forms and structures in which individual workers are embedded, varied socioeconomic circumstances, and the vagaries of localised labour markets.
Despite competing interests among different actors, what has occurred so far in the ‘live longer, work longer’ policy space has been a mainly one-sided exercise of assumed economistic imperatives rather than social
needs. There is scant evidence that citizens
or employers
have lobbied governments to enact policies to extend working lives, nor is there much evidence that governments have enacted effective policies that enhance older individuals’ employability
, although there have been some attempts to do so in a few countries, notably Austria
, Finland
, France
and Germany (Chaps.
2,
and
3; see OECD
2017b). Anti-age discrimination
legislation or the removal of mandated retirement ages
in several countries could be construed as reflecting the interests and preferences of some organisations and individuals that support working longer. Yet, anti-age discrimination
legislation appears to have had little effect on workplace realities and the desire to work longer is concentrated in a relatively privileged (and small) subset of national populations.
Far more important than employers’
and individuals’ preferences in the policy arena have been the actions of macro level
actors. Some international organisations have pronounced the unavoidable need for individuals to work longer; others have set targets for achieving such goals
(European Commission
2018;
OECD
2006,
2013,
2017b). National governments have taken up the ‘work longer’ baton, but mainly by focusing on legislation that raises pension ages and facilitates the trend away from
defined benefit
pensions
to defined contribution
retirement savings
schemes. This is what defines the ‘delay retirement’ approach. Cross-nationally it is well-developed and pervasive. To the extent that governments have promoted any ‘extend work’ initiatives, they have in most countries been piecemeal, limited, and exhortatory rather than thought-through, comprehensive and mandated
(see country chapters; OECD
2017b). The contrasts between the two approaches—delaying retirement or extending work—are discussed in the following section.
Delaying Retirement or Extending Work?
Who wants to delay retirement? The short and most obvious answers are fairly straightforward, but vary across and within different levels of analysis. We also caution that while some interests are obvious and dominate, complexities also abound. Still, at the macro level
, most governments are enthusiastic about the prospects of delayed retirement
. Far less is known about the preferences for encouraging delayed retirement among meso level
organisations and employers
. For example, there may be different perspectives on delayed retirement between public and private sector
employers
. While public sector practices may be somewhat more transparent, private sector
businesses’ position on delaying retirement unfolds mainly in a black box. There are a few notable exceptions where companies occasionally champion hiring older people
, for example as in Do It Yourself (DIY) stores such as B&Q in the UK
, because of the assumed appeal of age-contemporary staff to older customers. At the micro level
, many
older workers
prefer not to be compelled to delay retirement past long-established normal retirement ages
(Ní Léime and Street
2019). The job elites—stably employed and highly-remunerated individuals and professionals—may sometimes prefer to delay retirement and remain employed. However, job elites’ circumstances are not representative of
older workers
, whose employment conditions and financial circumstances are very different. Across these three levels of analysis and considering the interests of actors within them, the desirability of delaying retirement varies considerably. Most governments want delayed retirement
, but few individuals do. The stance of employers
—the key ‘brokers’ between states and individuals that connect the structures and security
of retirement, the experiences of
older workers
, and the value of pension benefits
—is largely unknown (although see Barnes et al.
2009; Mulders et al.
2014).
As mentioned earlier, policies can encourage or require people to postpone anticipated retirement dates. Governments impose new conditions for public pension entitlement, accomplished most directly by raising the age of entitlement for full retirement benefits (incrementally or in a single instance) as in most countries considered in this volume. Many also restrict eligibility for early retirement (either by increasing the age of eligibility for reduced pensions, or by reducing the value of pensions accessed before state pension age, as has occurred in Finland, Greece, Italy or Germany (see relevant country chapters). Retirement delays can also be accomplished somewhat less directly. The indirect approach can include substantially increasing the cost, length or number of contributory periods required of individuals to earn full benefits, as happened in Ireland and elsewhere. It can also occur by giving higher pensions to those who delay accessing their pension (as in over half of the countries considered in Part Two including Denmark, Estonia, Finland, France, Greece, Israel, Poland, the UK and the US), or by allowing workers to combine pensions with paid employment (as in France, Ireland, Netherlands, Poland, UK and others). Not all workers experience the effects of delayed pensions similarly. Being compelled to wait longer for a pension is a very different prospect for older individuals who have little to no income in the immediate years before qualifying for a pension, or who cannot find adequate employment in the aftermath of a redundancy, than for the job elites whose work is simultaneously intrinsically rewarding, very lucrative and preferred.
At the macro level and from the perspective of the state, delaying retirement has several perceived advantages. Political contestation aside, accomplishing the policy goal is straightforward. Workers who expected to retire at younger ages (previously established in national pension policies) must wait until the newly mandated older age is reached. Older pension ages reduce the value of state pension promises to some current and all future pensioners, and raise contributory costs in PAYG systems, at least against the yardstick of previously established retirement ages. Thus, delaying retirement postpones claims on PAYG first tier contributory social insurance pensions, and saves governments money on social pensions paid out of general revenues, unless some expensively unintended consequence like higher health and social care costs come into play. International policy experts, informed by neoliberal principles, claimed that state pension systems were unaffordable and unsustainable. Following their advice to raise retirement ages has saved countries several years of pension benefit outflows, appearing to improve the fiscal circumstances of the state by bringing contribution increases/benefit decreases into play and thus appealing to proponents of ‘unaffordability’ arguments. Further, some governments reduced the value of or eliminated social and defined benefits pensions that had explicitly promised predictable pension income in later life by transitioning to individualised defined contribution pensions. In most places, governments have changed regulations and, in some cases, their own social security systems in ways that have shifted more responsibility for ensuring retirement income away from governments onto individuals.
With rare exceptions, the actions and preferences of employers
are an essential conduit to extended work/delayed retirement
for most people, but employers’
roles are seldom invoked except tangentially in policy debates and studies on delayed retirement (see Chap.
2). For example, relatively little about employers’ responsibilities is discussed in policy debates concerning delayed retirement
or extended work, or is enacted into law. Instead soft policy measures such as ‘awareness campaigns’ and/or codes of practice (non-legally binding) are the preferred mechanisms
for employers
(
OECD
2017b). Neither are employers typically required to take action to make it possible for their employees
to delay retirement, nor to hire
older workers
seeking jobs. There are instances, for example in Italy
, Spain
and Finland
, where employers
are given incentives to hire older workers
(
OECD
2017b) but they are not compelled to do so except to earn the subsidy. Instead, policymakers
and policy papers exhort employers to create desirable working conditions to retain
, and when possible, to attract
older workers
through adapted work places, re-training, or
flexible work
arrangements, but with no requirement to do so. For example, codes of practice which are not legally binding are provided for employers
, and employees
in Ireland
, providing guidance on best practice
in negotiating retirement/extending working life
(
OECD
2017b). The neoliberal
turn mentioned earlier has, in most countries, also been a contributing factor to employers
converting
traditional
defined benefit
(DB)
occupational
pensions
to
defined contribution
(DC)
schemes, further undermining later life income security
for workers with occupational benefits.
Overall, the shift in pension types
DB
pensions
to
DC
savings
has delivered predictably adverse outcomes for many women workers and those with
low income
or precarious jobs
, particularly in the private sector
. As employment relations have become more flexible in recent decades, at least some private sector
workers have lost occupational retirement plans entirely, with recourse only to individual retirement savings
beyond state pensions. Further, depending on the investment achievements of such individualised schemes—whether occupational
DC
or individual retirement
savings—means that luck-based windfalls are possible in hot markets, and catastrophic losses during recessions
, as in the aftermath of the 2008 global financial crisis
(Duvvury et al.
2017). In ideal circumstances, DC
retirement
savings
plans may actually have some perverse effects in vibrant markets if delayed retirement
is a universal
goal, since windfalls can nudge people to retire early when times are good. However, many people (especially women) have insufficient surplus income to contribute to
DC
or individual accounts and even when they do, they could be desperate to stay in work even during periods of high unemployment, to try to recover from investment losses in periods such as the aftermath of the 2008 global financial crisis
.
At the individual level, the expectation that retirement can or must be delayed doubtless varies by individual circumstances. Previously, at least some could have managed to persist in work until they reached the retirement age
established by earlier policies, or could receive bridging benefits until the state pension kicked in by qualifying
for disability or unemployment benefits that took health
status
and employability
in the immediate pre-retirement years
into account. However, for many individuals, remaining employed for the extra years now required in most countries may be impossible. Recourse to disability and unemployment benefits has been severely restricted in many countries (
OECD
2017b) despite the extent of layoffs and redundancies
that pushed people out of jobs, relegating some to a status of ‘not working, not retired’ and rendering their financial plight grave.
Such discouraged workers—that is, older individuals who want to work but who have given up active job seeking because they cannot find employment—exist in something of a limbo status and are understudied. Yet social scientists know that long durations of labour market risks doubly stigmatizing discouraged
older workers
, who already experience the effects of systemic ageism
. Such individuals could hardly be considered early retirees
, at least in the voluntary sense of choosing or being in a position to retire—that is, needing or wanting to retire. Nonetheless, after some lengthy period of being unemployed, discouraged
older workers
might choose to self-identify as “retired” rather than “unemployed,” thus shedding a stigmatized identity (see Heslin et al.
2012; Froidevaux et al.
2019). How large this “limbo” group of older people
is for each country featured in this volume is difficult to ascertain due to data constraints. However, the OECD
estimates that discouraged workers are a significant part of labour forces, and analysis of US
Health and Retirement Survey (HRS) indicated that over half of retired older Americans characterized themselves as wanting to work but being involuntarily pushed or encouraged out of employment (Johnson and Gosselin
2018), clarion calls for extending work aside. While many factors go into individual employment and retirement decisions
, it is certain that changes to state
pension policies
, including age for receiving full retirement benefits
, are strongly structuring individual level experiences (see Börsch-Supan et al.
2019, for an economic analysis of features of pension systems that encourage
early retirement
or delayed retirement
).
Changes in the Average Age at Retirement for Men and Women
Many women have had their retirement plans disrupted even more than men
by increases in state pension ages
. This is because several countries had until relatively recently (Germany, UK)
or still have (Albania
, Austria
, Bulgaria
, Chile
, Czech Republic
, Israel
, Lithuania
, Poland
, Romania
, Slovakia
, Slovenia
, Switzerland
and Turkey
, mainly former Soviet and/or countries with conservative gender norms)
lower state pension ages
for women than for men
. Consequently, women have had to or will have to adjust more quickly to having to work longer (see Table
5.1, with gender differentiated retirement ages
highlighted in bold). Having a lower state pension age
for women, although often touted as an advantage, is associated with higher women’s poverty in old age, since pension systems are increasingly being linked to participation in paid employment (EIGE
2017).
Table 5.1State pension age/normal retirement age
Albania
| 12.23 | 65 for men; 60 for women gradual increase to 2024. To equalise for men and women by 2056 at age 67 |
Australia
| 25 | 65 for men and women. Will increase to 67 by 2023 |
Austria
| 30.5 | 65 for men; 60 for women. The retirement age for women will increase to 65 between 2024 and 2033 |
Belgium
| 30.6 | 65 To be 66 in 2025 and 67 in 2030 |
Bosnia and Herzogovina
| | 65 |
Bulgaria
| | 64.2 men; 61.2 women. To increase to 65 years by 2029 (men) by 2037 (women) |
Chile
| | 65: men; 60: women. Proposal in 2018 to EWL |
Croatia
| 19.9 | 65 for men. To increase to 65 by 2030 for women. To increase to 67 for all from 2031 to 2038 |
Cyprus
| 12.4 | 65: men and women. To increase every five years aligned to changes in life expectancy 2023 |
Czech Republic
| 19.4 | 63: men; 62 years 4 months: women (2016). To increase to 66 yrs, 8 months for both by 2019. To increase by 2 months per birth cohort (unlimited) |
Denmark
| 19.4 | 65 years (2016). To increase gradually to 67 years from 2019 to 22 and to 68 in 2030. Then increases directly linked to life expectancy |
Estonia
| 20.2 | 63 years. To increase gradually to 65 by 2026 for all |
Finland
| 21.5 | 65 years To increase in line with life expectancy subject to maximum of 2 months per year |
France
| 19.8 | 66 years, 7 months (for people born in 1954). Age of full-rate pension to increase from 65 to 67, depending on the year of birth, by 2022 |
Germany | 22.4 | 65 and 4–5 months. To increase to 67 (for those born in 1964) |
Greece
| 21.1 | 67 (With 40 years, can retire at age 62) |
Ireland
| 13.3 | 66. To increase to 67 in 2021 and 68 in 2028 |
Israel
| 11.6 | 67 for men. 62 for women to increase to 64 by 2022 |
Italy
| 21.7 | 66 years and seven months with minimum 20 years contributions. To increase in line with life expectancy to 67 in 2021 |
Lithuania
| 19.9 | In 2017, the old-age retirement age is 62 years for women and 63 years and 6 months for men (Ministry for Social Security and Labour 2017) |
Netherlands
| 19.1 | 65.5 (2016). To increase to 66 in 2018 and 27 in 2021. To increase linked to increase in life expectancy |
New Zealand
| 15.6 | Ten years’ residency since age 20 (including five years after age 50) entitles people to public pension from age 65 |
Poland
| 17.5 |
Poland restored statutory retirement age of 65 for men and 60 for women, reversing 2013 commitment to increase the age to 67 by 2020 for men and by 2040 for women. In October 2017, statutory retirement age decreased by 14 months |
Portugal
| 20.3 | The normal age of retirement with an old age pension was 66 years and 2 months in 2016, to be increased by linking to life expectancy gains. Age of retirement can be reduced by 4 months for each year’s contributions exceeding 40 yrs |
Romania
| 16.8 | 65: men; 60 years and 8 months: women. Plan to increase women’s to 65 |
Serbia
| 19 | 65 (men ); 61 (women) (Milovanovic et al. 2016). To increase and equalise retirement age by 2032 at age 65 |
Slovakia
| 16 | 62 years for men, lower for women with children (58.25 for women with 5 or more). To increase to 62 for women by 2024. To increase in line with life expectancy from 2017 |
Slovenia
| 20.1 | 59 years, 4 months (men); 59 years (women). To increase to 60 in 2018 (men); 60 in 2020 (women) |
Spain
| 18.2 | 65 years, four months (all). To increase to 67 in 2027 |
Sweden
| 20.4 | From age 61—unlimited deferral possible. Retirement age 65 (guarantee pension) |
Switzerland
| 18.3 | 65 (men) and 64 (women) |
Turkey
| 7.8 | 60 (men) 58 (women) To increase to 65 for men and women by 2044 |
United Kingdom
| 18.2 | 65 (men and women) by 2018. To increase to 66 by 2020 and 67 by 2028 |
United States
| 16 | Normal retirement age = 66. To increase to 67 by 2022 |
Adjustments to ‘pre-retirement’ policies
—early retirement
, disability
pensions
, extended unemployment insurance are intertwined with the extend work/delay retirement agenda. Many governments (
e.g. in Finland
, France
, Greece
, Italy
, Germany, Switzerland)
have removed
early retirement
options or give actuarially reduced pensions for those who access their pensions before state pension age
, for example in Switzerland
where
early retirement
in the
public pension’s
scheme is possible from age 63 for men
and age 62 for women. The full pension benefit
value is reduced by 6.8% for each year of early claiming
(OECD
2017a). Following the encouragement of the OECD
and other international organisations, several other
governments
(including Austria, Belgium, Bulgaria, Finland
)
have made it more difficult to access disability
pensions
—which used to be another route of exit from employment for
older workers
.
Of all the pension related policies, the one that is most consistent or bridges to extended work is the ability to continue working while being in receipt of a pension. This is possible in several countries including Australia, Estonia, France, Ireland and Poland, among others. Another popular policy present in several countries is one that allows workers to accrue higher benefits through postponing retirement/more years of work. The latter is possible in at least 15 of the countries under consideration (Denmark, Estonia, Finland, France, Greece, Israel, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK, US).
There is ample evidence that women already have lower pension
incomes
approaching retirement and tend to be more reliant than men
on safety net
state pensions due to their different lifecourse trajectories
, which typically include more periods away from formal paid employment for caring
(Bettio et al.
2013; Dewilde
2013; Ginn et al.
2001; Ní Léime et al.
2017). Some of the pension reform
policies advocated by the OECD
and implemented by several countries such as increasing the number of contributions necessary to access a minimum and maximum state pension, make it even more difficult for those who provide most
informal care
(women) to build up adequate pensions (OECD
2006,
2013).
An assumption underlying extended working life
policies
is that an undifferentiated
‘adult worker’ model of working life
prevails across most countries and that it is therefore easy for women to continue working past traditional
retirement age
. However, even a cursory comparison of
pension policies
and reforms across countries indicates that there is a wide variation in pension systems with 13 out of the 34 countries studied still retaining lower pension ages for women than for men
, thus making the increase in pension ages more punitive for women (see Table
5.1). This partly reflects a wide variation in gendered social norms regarding caring
and a variation in family
friendly policies
which would support women both to work and to provide child and elder care
(Ní Léime and Loretto
2017; country chapters, this volume).
Health
Average healthy life expectancy
at birth is 64.2 years for women and 63.2 years for men
in the European Union
(Eurostat
2019). Against this backdrop, setting retirement ages
at 67 or more, as advocated by the OECD
, is very high, offering little or no time for healthy years in retirement for many
older workers
. Most evidence points to lower life expectancies
and poorer health
for workers in low-paid, physically demanding occupations and lower socio-economic status
(Majer et al.
2011; Marmot and Bell
2012). There is increasing recognition of a strong relationship between health
(physical/mental/stress) conditions across the lifecourse limiting the realistic potential for extending working life
(EU-OSHA
2016). Physically demanding work
is a predictor of disability retirement (Pohrt and Hasselhorn
2015). There is considerable evidence that workers in construction, manufacturing and services
sectors are more susceptible to work-related chronic health
conditions
such as musculo-skeletal disorders (MSDs) and workers aged 55+ report health
as a reason for wanting to retire within the next five years (EU-OSHA et al.
2017). Violence
, harassment
and stress are more likely to be reported by workers aged 55+ in the health
, transport and education sectors as reasons for planning to retire in the next five years (Eurofound
2015). A higher proportion of managers and professionals aged 55+ in the EU28 (75–80%) compared to workers in elementary occupations, manufacturing and craft workers (60–65%) report that they will be able to work at age 60 (Eurofound
2015). This varies by country with over 80% of workers in Ireland
, Portugal
the Netherlands
and Sweden
expecting to work at age 60, compared to 55–61.5% of those in Croatia
, Hungary, Poland
, Slovenia
and Slovakia
. However, a recent report by major EU agencies on the working conditions of
older workers
(EU-OSHA et al.
2017) recommends further research on specific situations related to job, occupation and sector to investigate implications of working in each occupation on possibilities for extending working life
.
Changing Employment Trends
Employment trends away from the manufacturing and clerical jobs available in the mid-late twentieth century in Europe and North America due to globalisation
and automation
combined with many
older workers’
lower levels of education and
age discrimination
, leave few good choices for many
older workers
. In fact, older workers
are likely to be forced into the only readily available jobs—low-paid precarious employment
in the services
sector (EU-OSHA et al.
2017; Standing
2011). While there may be fewer physically demanding jobs
in the future with the introduction of digitisation, not only does it eliminate jobs workers already do, this can also result in more sedentary jobs, which in turn can cause damage to backs, necks and other MSD. The impact of such changes on the health
of workers both across the lifecourse and as they grow older in terms of their employability
at later ages is not yet well understood
. Older workers
(aged 55 and over) tend to have lower education and many may not have training in digitisation (Eurofound
2017). To ensure that such workers are employable, governments and employers
would need to provide training for those who are unemployed and/or whose current jobs may be about to change to keep abreast of new
technology
. Carefully designed training might safeguard against a mismatch of skills with available jobs so that
older workers
are not disadvantaged. Yet, there is evidence that older workers
are less likely than younger workers to participate
in training, suggesting that they may be less employable (Eurofound
2017).
In fact, what the country reports in Part Two show is that there are not many promising initiatives to support older workers’ employment—only a few rather underdeveloped initiatives in a small number of countries. For the most part, (and with the exception of countries such as Finland and Austria) rather than taking a coordinated comprehensive approach, even the handful of countries with explicit supportive extended work policies (versus delayed retirement policies) are mainly involved with employment opportunities offered by a small cadre of exemplar employers. This very limited foray into extended work policies and practices belies the utility of ‘extended working life’ for current policy initiatives and emphasises instead the ‘delaying retirement’ agenda that has been enacted almost everywhere. Taking seriously the need to describe accurately policies and practices with real potential to extend work poses several questions. What would programmes to extend working lives need to look like if they were to work for more than a handful of workers? What would employers need to do to make extended working lives more possible? Could most older workers reasonably be expected to work longer? Are there categories of older people who could not? If extended work is possible for some, will there be sufficient training offered to enable older people to be trained appropriately for existing job vacancies, rendering them able to adapt to rapidly transforming job markets and real employment opportunities? Can researchers and policymakers actually identify the employment sectors where extending work would be most possible? Answers to such questions emphasise the gaps in knowledge about employment prospects for older individuals, and point to some directions for future research and more attentive policymaking attuned to the life circumstances of older people presumed able to extend their working lives.
Current Extended Working Life Debates and Their Potential Policy Futures
Participants in extended working life
policy debates often prefer language that is relatively vague and which emphasises the positive side of policies governments plan to enact. Transnational and national policy elites have asserted that taking advantage of increased longevity
means more years in work. The tendency is to use positive but non-specific rhetoric associated with the hegemonic ‘active ageing’
agenda and to ‘naturalise’ the idea of extending working lives. The sleight of hand invoked by ‘extending working life
’ language masks the more specific and less optimistic formulation invoked by ‘delaying retirement’, obfuscating both the intent and outcomes likely to be associated with the policies that are actually enacted. Public audiences have been conditioned for decades with messaging about ‘too many, too expensive’ applied to
ageing populations
(see, for example, Willetts
2010; also see early Street and Quadagno
1993 and later Higgs and Gilleard
2010 critiques). If the sense of unavoidably having to work longer is insufficient to motivate older individuals to try to accomplish what for many is impossible, the spectre of
intergenerational conflict
has always lurked in the background as a rough and ready rationale for postponing entitlement to retirement benefits
(Higgs and Gilleard
2010; Quadagno
1990; Street and Quadagno
1993). The inevitable conclusion drawn from the way debates about extended work/delaying retirement unfold is that, with rare exceptions, everyone everywhere must work longer.
Perusal of the country chapters in Part 2 demonstrates that there are many additional topics not fully covered in this concluding chapter for Part One, which are essential to understand if future older people
are to have any meaningful prospect for retirement. Sociologist Myles (
1989) characterised retirement as ‘the right to stop working before wearing out’, but increasingly, employment is drying up, pension promises
are being withdrawn and retirement in the future may be an elusive goal for many individuals if the focus of policy action continues to be on delaying retirement rather than extending meaningful, dignified work.
Taking a gendered perspective on the ‘live longer, work longer’ framework, persistent gaps in pay compared to men during their working lives both deprives many women of the surpluses they would need to save for their own retirements and ensures that their earnings-related state pensions are calculated on lower lifetime earnings. Consequently, the gender pay gap reaches into and magnifies in multiple ways the even greater gaps between women and men in retirement. On top of lower pay, the hit to lifetime earnings due to the additional time that (mainly) women spend outside of paid employment or in part-time or temporary positions to perform carework for children, disabled family members, and frail elders, and their pay disadvantages multiply. Time out of work for childcare, even when partially compensated by credited time built into state pension contribution formulas, ensures that many women miss out on early career advancement, pay rises and occupational pension credits, which then become compounded over a lifetime of work. The compounding effects of earlier lifecourse time out of employment is not the only issue for older workers with care responsibilities. Adaptations such as temporary or part-time work in the face of heavy caring responsibilities for older family members deprive their unpaid family caregivers—typically women—of income in the years leading up to retirement. As state retirement ages increase, women appear likely to be disproportionately affected by persistent gaps in pay and breaks from employment needed to perform the unpaid work their societies expect them to do.
Another emerging topic associated with extending work involves demographic changes
whose contours are not yet entirely clear. For example, one concern about income sufficiency in old age (and thus pension costs) has been the greater longevity
of women. Although women experience the onset of chronic conditions at earlier ages than men
, women also live longer. This highlights the risk of policies that delay retirement, in that many women may be unable to continue to work and save, despite the likelihood of living longer on lower incomes. While the various gender
gaps
—in longevity
, pay, and pensions—have so far insured that older women
will be more likely to live in poverty than older men
, the longevity
gap at least seems to be narrowing somewhat (Glei and Horiuchi
2007). How the decreasing longevity
gap might play into the tension
between ‘delaying retirement’ and ‘extending work’ is not clear. Another demographic trend is recent evidence of declines in life expectancy among subsets of
ageing populations
in affluent countries—fluctuations in many countries, but likely a trend in at least the US
and the UK
(Ho and Hendi
2018). Many factors contributing to longevity
are systematically linked to social advantage and disadvantage
, and it appears that growing social inequalities
may contribute to more and earlier deaths among some of the most vulnerable groups
of older people
. This vulnerable category often includes individuals with low levels of education who started work at young ages, at least compared to those with higher levels of education and later onset of employment. They have experienced the lifetime disadvantages
associated with lower levels of education, early employment in unskilled or semi-skilled jobs, often with high physical demands
, low pay and job insecurity
. Rarely are policy remedies developed to compensate, but there are some exceptions. In Austria
, there are provisions for people involved in heavy physical work for a certain period to retire earlier
(OECD
2017b). A blanket mandate for working to older ages in already long working lives for such vulnerable people seems, at face value, to be inequitable. Recognition of some earlier lifecourse employment disadvantages
can be built into policies to extend work, too, but that has not yet happened widely. Still, developing these kinds of policies would make extended work that is adequate, dignified, and feasible for different categories of workers possible to accomplish.
On a more positive note, there are some policy changes in several countries that permit workers who want to postpone retirement until later ages not only to make that choice but to reward them for it. For example, in countries like the United States, Denmark, France and others individuals who postpone receiving state pension benefits beyond the normal retirement age (up to a maximum) receive actuarially determined permanent increases to pension benefits for doing so. Not surprisingly, this is especially appealing to professionals who enjoy their work, but could also benefit other workers whose health and capabilities permit them to work longer. Other policies permit individuals who reach the new higher state pension ages to both work and receive state benefits at the normal retirement age (without penalty), encouraging individuals who can combine pension income and employment income to stay on the job. Unfortunately, both of these examples of pension-linked policies that provide some good choices to extend working life are of the greatest value to the job elite who have already experienced lifetimes of high quality employment rather than most workers in most countries. At the other end of the employment quality spectrum, such policies seem entirely irrelevant for individuals whose job characteristics, health status or caring responsibilities render a choice to continue working impossible.
The foregoing highlights another challenge. An inescapable reality is that, for all the rhetoric surrounding the need for public/private partnerships and individual thrift to ensure later life income adequacy as populations age, only states can guarantee a predictable later life income. The proliferation of private/individual savings schemes for retirement that rise and fall with the fortunes of financial markets, employers’ replacement of DB with DC retirement plans, the declining value of states’ pensions and the fact that earlier promises by governments cannot now be depended upon is the current situation of the ongoing public/private partnership. This will affect current workers in the future (not just older people now) blurring the locus of responsibility for later life income security. Pensions were designed initially, after all, to ensure a floor of protection for retirees because their needs could not be met entirely through employment, individual thrift, or family support. In the latter half of the 20th century, expanding state pension systems and robust occupational defined benefits pensions provided a pension income guarantee that established the institution of retirement for most workers. But will retirement persist into the future?
The relationship between public and private responsibility that institutionalised retirement
income
systems has been transformed. The advent of
DC
retirement savings
that have come to dominate the occupational benefit sector has shifted outcomes from a pension promise
to investment (or loss) potential, and previously shared social responsibility onto individuals (Russell
2014). The individualisation of retirement income
responsibility
has exposed some in recent generations to potentially greater reward (higher retirement incomes
) when economic markets are thriving, but to serious risk when markets fall—as in 2008—or worse if they fail, as in the Great Depression
(Russell
2014). It also raises a more fundamental issue. One of the partners in the retirement income
guarantee of the last century, that is, employers
that provided
traditional
DB
occupational
pensions
, no longer has the fiduciary responsibility to keep a pension promise
to employees
, only to provide a savings
and investment mechanism
in
DC
schemes. Not only that, but employers’
role in policies considered to extend working lives is, at best, relatively undefined and unclear despite claims that
population ageing
requires public/private partnerships to find solutions to the ‘problem’. What is the appropriate role for private sector
organisations in the face of
population ageing
? Can they be compelled to provide employment for
older workers
, or to stop discriminating based on age or to provide
secure
occupational
pensions
?
The relationship between declining health
status
and disability is complicated. Sometimes a person is not completely disabled, but neither can they perform all the activities of their usual employment. For instance, individuals may perceive their health
to be good, yet still have decrements to strength or stamina, or suffer disabilities associated with repetitive tasks, such as back or knee problems, which make accomplishing job tasks difficult or impossible. Others experience age-related onset of chronic health
conditions
that interfere with employment, or the combination of poor health
and declining physical abilities or overwhelming stress that prevent them doing what had been their usual employment at younger ages. The complexity of establishing a ‘fair’ approach to compensation in such situations needs to be considered in the context of policies to extend work. As the example of Austria
shows, one strategy is for governments to allow workers in physically demanding jobs
to retire earlier. There, a measure was introduced with specific rules for claiming
early retirement
for long-term employees
engaged in strenuous work for at least 10 of the 20 years immediately preceding retirement age
(‘heavy labour pension’)
(OECD
2017b). A similar system facilitating earlier retirement for physically demanding jobs
exists in France
, but many countries have no such provisions. The longevity
gap between individuals with low lifetime earnings and the top 5 or 10% of workers (and thus the length of time different individuals can expect to receive retirement income
benefits) presents another complexity in reforms intended to be equitable in terms of extended work or delayed retirement
.
If an individual has the skills needed for hard physical labour, such as construction or personal care
jobs, but no longer has the physical ability to work in that area, what could possibly be the prospects for continued employment? In some countries, including Belgium
, governments subsidise the wages of those who are forced to take lower paid work
if they are no longer able to continue with heavy work
(OECD
2017b). Although job training
or skills re-training are often touted as the answer to the job capacity/job availability/skills mismatch
, the fact is that there is very little systematic evidence that suggests training increases employability
beyond a handful of individuals (Fadula
2018). For example, in a carefully designed evaluation of federally-funded job training
programmes conducted for the US
Bureau of Labour concluded that evidence from the evaluation of nationwide training funded by the Adult and Dislocated Worker programs ‘does not have positive impacts in the 30 months after study enrolment’ (Mathematica
2017: xxxiii). Logically, it seems as though training should work. However, training is decidedly not a panacea. The hollowed out middle of employment opportunities that has accompanied de-industrialisation and off-shoring limit employment possibilities. Job training
on offer frequently diverges from preparing trainees for the skills that local employers
need. High local unemployment
rates and low demand
for workers can render training ineffective if the desired outcome is landing a training-related job with decent pay and stable employment. And from an individual perspective, post-training outcomes may be poor because of how difficult it is for people to uproot and job seek outside their immediate locales and supportive social networks, or to relocate speculatively to areas where job openings consistent with new training might be available.
Unemployment rates
are higher in some countries than others, but even the most robust labour markets have barriers to
older workers’
employment. Most employers
prefer the cheapest labour they can find and this attribute is usually characteristic of first time job seekers. For example, even in the vibrant US
job market with very low official levels of unemployment
, older workers
who became unemployed in the aftermath of the 2008 financial crisis
remained unemployed for significantly longer spells than younger workers (Street and Tompkins
2017). Once unemployed, older workers
typically have the longest periods of unemployment (if they can find work at all) and often end up underemployed (in jobs with less job
security
and/or pay than previous employment) or discouraged (and not counted in national unemployment statistics at all). Some countries recognise this situation and provide policies aiming to address these issues. For example, in Poland
, Romania
and Spain
, the government provides subsidies
to employers
who hire unemployed
older workers
(
OECD
2017b). In other countries, such as Belgium
, governments supplement the wages of workers who have been forced to move to a lower paid non-physically demanding job
in the same company as they become less able to perform their previous more physically taxing
role (
OECD
2017b).
Concluding Thoughts
Pensions reflect economic relationships and national
pension policies
reside within technocratic realms. But what has been lost in most current debates is the fact that it is not only the national economic and demographic circumstances that must be considered to get extended working life
policies
right, but also the moral economy
of
ageing—the value societies place on older
people—as well. The rhetorical flourishes of the extended working life
debate have been fraught with crisis
language and scare-mongering, starved of emphasis on the connection between the lifelong contributions that older people
have made to their entitlement to benefits. The challenge of
ageing populations
and scarce resources are seldom framed in the context of how to develop effective, sustainable policies that take into account the disproportionate advantages and disadvantages
that are currently and will in the future be experienced by older people
(see Phillipson
2019).
What does it really mean if societies accept the idea that pensions—and the older people who depend on them—are unaffordable? What entity can be responsible for provision of income security in old age? The responsibility increasingly is being shifted away from public or employer responsibility where risks could be shared and onto individuals and families. But if countries are struggling to plan effectively in the face of relatively more older people/fewer younger workers—what then are families expected to do? Families face the challenge of bridging an increasing number of provision gaps with more older members/fewer young members, albeit on a smaller scale and with decidedly fewer resources to pool risks.
A more optimistic perspective could take advantage of promising practices in some countries that can be adapted to the particular cultural contexts and political economies of others. In countries like Finland
and Belgium
, policies to extend good quality work (and not simply delay retirement) have been implemented. For example, following evidence-based research and discussion between the social partners
, a number of measures were introduced in Finland
to enhance
working conditions for
older workers
. These included improving preventive health
measures at work to address issues of not only physical but also psychological wellbeing
for older workers
. There are a range of flexible working arrangements for older (and all) workers in Finland
. The Finnish
Ministry for Social Affairs emphasised the necessity of employers
, employees
and government collaborating to improve health
at work. Finland worked with the European Agency for Safety and Health
at Work to introduce campaigns to promote an integrated management approach to the problem of musculoskeletal disorders (MSDs), emphasising that employers
, employees
and government should work together to tackle MSDs
(OECD
2017b). In Belgium
, an Employment Opportunity Plan was introduced in 2013, for all
older workers
in private firms with more than 20 employees
. Employers
may choose from a number of measures aimed at recruiting or retaining older workers
. Next, the Flexible and Workable Work Act (2017) reformed training and, more importantly, improved working conditions for older Belgian workers throughout their careers, enabling them to work longer, rather than simply increasing state pension age
. In other countries, such as France
and Poland
, their relatively low ages for entitlement to full retirement benefits
hint that (if labour markets can provide jobs for
older workers)
, it might be possible to emulate other countries’ practices by gradually phasing in extensions of working lives for individuals who, by international comparison, are relatively ‘early’ retirees
. But in many countries, assertions that future pensions are unaffordable and policies must change to make them less expensive (or rhetorically, more sustainable) by extending work for entire populations is an impoverished pathway to the more holistic goal of extending working lives. In fact, the typical approach to ‘affordability’, rather than honouring the contributions of older citizens and dignifying later life work seems instead to guarantee low incomes
in old age, expanding rather than contracting the legions of older people
who already struggle on limited incomes. On average, women, workers with low lifetime earnings, and people with physical frailty or poor health
will be chief among the older citizens whose poverty will be ‘baked into’ most extended working life
/delayed retirement
regimes as they are currently configured.
A richer debate about extended work would incorporate attention to the unavoidable links between earlier lifecourse experiences and variation in life chances for adequate later life outcomes that are systematically associated with gender, health
status
and other social characteristics (Phillipson
2019). For example, explicit attention to temporal issues would require more focus on minimising systemic disadvantages
associated with essential unpaid caregiving
, whether for child or elder care
. There is wide variation among countries in terms of addressing (or not) unavoidable breaks in employment associated with
caregiving
to avoid perpetuating lifelong disadvantages
for carers. The amount and value of
public pension
contributions credited to carers who must reduce hours of work or leave employment to care
, if provided at all, vary and the issue of accounting for carers’ socially necessary and valuable unpaid work
is seldom addressed in extended work and
pension policy
debates, to the disadvantage
of (mostly) women. Or, consider the work effort of individuals with relatively low levels of education who often enter paid work
—frequently in un- or semi-skilled jobs—during their late teen years. Policies designed
to extend working lives would recognise that starting employment up to a decade younger than highly educated
professionals is already an extension of working lives, merely at the younger end of the lifecourse. Exhorting such early workers to avoid newly defined ‘premature’ or ‘early’ retirement once they have reached the earlier-established pension age hardly seems equitable. That is especially true given that globalisation
and automation
have decimated many formerly good paying jobs, sectoral disruptions in labour markets force redundancy
and economic downturns eliminate jobs, or physical limitations and
caring responsibilities
limit employment capacity. The structural character of such impediments to extended working lives demonstrates the need for comprehensive and appropriately refined policies that take lifecourse
issues seriously, since the interconnectedness of lifecourse trajectories
and later life outcomes is undeniable.
The last words on the problems and possible merits of extended working lives will be rendered far in the future. In this volume, we have tried to complicate the conversation and the country chapter authors have communicated the current state of the extended working life
debates in their own countries. It is obvious that, with very rare exceptions, there is not much yet to be optimistic about in terms of thoughtful and effective policy outcomes. There are occasional forays into devising programmes that can help, such as the Finnish
and Belgian policy measures described above, suggesting that policy innovations can be designed to facilitate extending work. But examples of effective extended work policies are few and far between. The Finnish
experience demonstrates the need for debate, evidence-based research and an integrated approach among partners—employers
, employees
, trade unions
and government (national, regional and local) to devise appropriate policies to achieve good quality employment for
older workers
(Takala et al.
2015). The international focus so far has NOT been on extended working life
policies
that would deliver adequately compensated, appropriate jobs for
older workers
, but rather on delaying retirement benefits
to later ages. We have argued that, although the two processes have some obvious overlaps, they are two distinctly different ways of thinking about policy approaches for
ageing populations
and that serious attempts to extend working lives will require policies that take that goal seriously.
The complexities associated with extending working life highlighted here cannot be addressed by simplistic unilateral policies imposed by governments. If we are to avoid deepening existing health and financial inequalities in later life associated with working in particular kinds of often low-paid, precarious, physically demanding or stressful occupations, more nuanced policies need to be designed. The realities of local labour markets and older workers’ skills mean that globalisation and digitisation/automation have to be taken into account for reform proposals to make sense. Similarly, if we are to ensure that gender inequalities and the disadvantages experienced by individuals with poor or diminishing health are not to be further entrenched, reforms must recognise and compensate for the existing gender and health inequalities embedded in pensions, pay, and employment participation, and the imbalance in unpaid caring responsibilities that exist. There is a need for coherent and imaginative policies devised in cooperation between employers, trade unions, government and workers to address occupational health and gender equalities in pension building across the lifecourse and to ensure that extending working life is an appealing choice rather than a punitive imposition.