After they retire, European seniors aren’t drawing their pensions right away. They’re even leaving employment earlier than the authorized retirement age.
In line with 2017 figures published by the Conseil d’Orientation des Retraites, the typical efficient retirement age in France is 62.5 years. However on nearer evaluation, this quantity represents the age at which entitlements turn into due, at which an individual can start to attract a pension. It doesn’t align with the precise age at which seniors go away employment.
To measure the phenomenon we should flip to the average effective age of departure from the labor market, an indicator printed yearly by the OECD. In 2017 the determine in France was 60.6 years for males and 60.5 for ladies. That is 18 months decrease than the authorized retirement age and decrease nonetheless than the pensionable age cited above. Throughout this interlude with neither wages nor pension, seniors are counting on unemployment or invalidity advantages, or on the earnings of their companion, or else are in a pre-retirement section financed by their former employer. Those that want to hold working may experience difficulties doing so. However is that this behavior of leaving earlier than the ultimate whistle a French one alone?
18 European nations involved
Clearly every nation is totally different however one fixed is obvious: among the many OECD’s 26 European member countries, 18 have a mean efficient retirement age which is decrease than the authorized one. Gaps differ by nation.
Italy has Europe’s largest hole. Italian employees go away employment four years earlier than the authorized age for males, and 5 years earlier than for ladies. The nation’s employment price for 55-64s barely exceeds 52%, eight factors decrease than the OECD common.
Additional north, the Dutch go away the labor market between 2 and three years earlier than the authorized age. A reality that may be defined by, specifically, “restricted entry to invalidity profit”, says Simon Rabaté, economist on the Institut des Politiques Publiques. The Dutch reform in query dates from the late 1990s.
Conversely, in some nations the efficient common retirement age is greater than the authorized one. Examples embody Portugal, Iceland and Sweden. On common Swedes go away the labor market at 66, one 12 months older than the authorized age. On this nation with Europe’s highest life expectancy, reforms started in the 1990s and embody a points-based pension which impressed Emmanuel Macron’s deliberate measure. Swedish employees can apply for pension advantages from at 61 however don’t obtain the “assured pension” earlier than 65. This corresponds to 1 / 4 the typical gross wage and enhances seniors’ earnings the place that is inadequate.
In the direction of a extra direct work-retirement transition
These outcomes should nonetheless be positioned in a long-term context. Throughout Europe the hole between common efficient retirement age and the authorized equal is shrinking. Within the OECD, folks left the labor market at 63.1 years outdated on common in 2004, towards 65.three in 2017. The phenomenon may be defined by “the closing of pre-retirement schemes in addition to the restriction of entry to unemployment and invalidity advantages”, in line with Simon Rabaté. We’re due to this fact headed in direction of a “extra direct employment-retirement transition”, provides the economist. The state of affairs is determined by public coverage in every nation (together with will increase to the authorized retirement age, and reforms of unemployment profit) and the diploma to which companies are managed in a “senior-friendly” approach.