More than half of the OECD countries intend to raise the retirement age due to the aging population.
Emese Grancsa
Current Affairs
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According to the OECD's biannual report, more than half of the member states are planning to raise the retirement age in response to the aging population. On average, the normal retirement age will increase from 63.9 years for women and 64.7 years for men in 2024, to 65.9 years and 66.4 years for those who start working now. There are significant variations between countries, with Luxembourg, Slovenia, and Colombia maintaining the retirement age at 62 years, while Denmark and Estonia will reach 70 years or more.
This trend is driven by demographic aging, which will put pressure on pension systems. It is estimated that by 2050, the ratio of people over 65 to those active will increase from 33 to 52. South Korea, Spain, Italy, and Greece will experience the largest increases. Additionally, the employment rate of people close to retirement age is low in certain countries, such as Spain and those in Latin America. The authors of the report forecast that public pension spending in the OECD will rise from 8.8% of GDP to 10% by 2050.
This trend is driven by demographic aging, which will put pressure on pension systems. It is estimated that by 2050, the ratio of people over 65 to those active will increase from 33 to 52. South Korea, Spain, Italy, and Greece will experience the largest increases. Additionally, the employment rate of people close to retirement age is low in certain countries, such as Spain and those in Latin America. The authors of the report forecast that public pension spending in the OECD will rise from 8.8% of GDP to 10% by 2050.
Sources
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