Transition from Work to Retirement in EU25
The policy agenda of extending working lives requires a holistic understanding of factors underlying the decision of older workers to withdraw from work and to retire. This brief paper presents employment patterns and trends of older people across EU Member States and identifies policy initiatives that would encourage more flexible and later retirement. The descriptive empirical evidence (from the EU Labour Force Survey) indicates that there are a broad range of experiences in EU countries with respect to the employment of older workers (those aged 50 and over). Strikingly, in the majority of EU15 countries, close to one-half of those of 50 and over are either unemployed or inactive, with reliance either on early retirement pensions or on social assistance benefits. The recent pension reforms in a number of these countries have increased the retirement age and this is likely to induce older workers to work longer. There is already some evidence that the effective retirement age is on the increase. Results suggest that the increase in older workers' employment is stronger for women than for men, and also for more highly educated. In most instances older workers either tend to be in full-time employment or inactive with very few occupying intermediate positions. Although there is some evidence of a gradual transition towards retirement, there is still a relatively minor proportion of the work force taking advantage of this, as well over 70% of men and around 55% of women in employment in their early 60s worked 35 hours a week or more. The policy aim should therefore be to encourage 'flexible and later retirement'. Additional incentives need to be provided so that people are not only able to move between jobs in later working life but also able to work part-time, without losing their entitlement to benefits (such as early retirement pensions). Such policy incentives will enable workers to avoid the phenomenon of a 'cliff-edge' fall into retirement that many of them often face.
|Date of creation:||Oct 2006|
|Contact details of provider:|| Web page: http://sticerd.lse.ac.uk/case/_new/publications/default.asp|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kapteyn, A. & Kalwij, A.S. & Zaidi, M.A., 2000.
"The Myth of Worksharing,"
2000-23, Tilburg University, Center for Economic Research.
- Kapteyn, Arie & Kalwij, Adriaan & Zaidi, Asghar, 2000. "The Myth of Worksharing," IZA Discussion Papers 188, Institute for the Study of Labor (IZA).
- Kapteyn, A. & Kalwij, A. & Zaidi, A., 2000. "The Myth of Worksharing," Economics Series Working Papers 9932, University of Oxford, Department of Economics.
- Arie Kapteyn, 2000. "The Myth of Worksharing," Economics Series Working Papers 32, University of Oxford, Department of Economics.
- Giuseppe Carone, 2005.
"Long-term labour force projections for the 25 EU Member States: A set of data for assessing the economic impact of ageing,"
European Economy - Economic Papers 2008 - 2015
235, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Giuseppe Carone, 2005. "Long-Term Labour Force Projections for the 25 EU Member States:A set of data for assessing the economic impact of ageing," Labor and Demography 0512006, EconWPA.
When requesting a correction, please mention this item's handle: RePEc:cep:sticas:case112. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.