Retirement in Europe Annika Sundén Presentation at 16th Annual Meeting of the Retirement Research Consortium “Social Security and the Retirement Income System” August 8, 2014

Retirement age is increasing in many countries No changeIncreased Retirement Age < 65=65>65<65=65=67>67 Belgium (62) Luxembourg (60) Slovakia (62) Slovenia (63) Portugal Switzerland Austria Island (67)France (62)Estonia Hungary Greece Spain Germany Czech Republic (69) Ireland (68) UK (68) Finland Sweden Norway (67) Netherlands Poland Denmark (68.8) Italy(68.7)

Later retirement necessary to maintain level of benefits in Sweden CohortLife Expectancy at age 65 ”Necessary” Retirement Age to Adjust for Changes in Life Expectancy Time in Retirement and 5 monthsage 6517 yr 5 months and 3 months66 and 6 months19 yr 3 months and 3 months68 and 1 months19 yr 10 months and 10 months69 and 2 months20 yr 5 months

Fewer claim benefits at 65 in Sweden <6565>

Workers leave the labor force later in the Nordic countries

And in the EU. But still below retirement age

More older people are working but differences among countries remain

Less focus on labor demand Older workers report age discrimination more often than younger workers Priority to strengthen financial incentives Public awareness campaigns to encourage employers to hire older workers often only measure

Conclusions Increases in retirement age in most European countries Several countries have introduced automatic adjustment to longevity Average age of leaving the labor forces is moving up Priority on financial incentives, less focus on labor demand Challenges remain