Discover how reforms and demographic changes are shaping the future of retirees.
Rising life expectancy, falling birth rates, and evolving labor markets are compelling countries worldwide to reassess their pension systems. This trend is leading most nations to increase the age at which citizens can claim state pensions. However, some countries present a contrasting picture, maintaining or even lowering their retirement ages. Western analysts have examined these diverse global trends.
In Europe, the typical retirement age falls between 62 and 67. For instance, Nordic countries like Denmark, Norway, and Iceland currently have a retirement age of 67 for both men and women. Yet, even here, changes are underway; Denmark`s parliament recently legislated a gradual increase to 70 by 2040 for those born after 1970. According to the latest data, while the current age in Denmark is 67, it will progressively rise in the coming years, reaching 70 for individuals born after 1970.
Other European nations show similar ranges: the Netherlands averages around 66.6 years, Germany about 65.8 years, and Portugal and Spain sit at approximately 65–66 years.
The United Kingdom, historically known for one of Europe`s lower retirement ages, is also shifting. By 2028, the age for both men and women is set to rise from 66 to 67. A report from the Institute for Fiscal Studies suggested that, without the so-called “triple lock” pension protection, Britons might need to work until 74 to ensure a decent pension. This is because the country continues to gradually raise its retirement age, and it may increase further in the future.
Notably, a law was passed in the UK in 2022 envisioning a gradual increase in the retirement age, though in recent years, there have been discussions about freezing or even reducing it. Consequently, over the coming decades, the retirement age may remain at 66–67 years, or in some instances, even lower.
In contrast to most European countries, Turkey maintains a very low retirement age. Until 2022, it was 58 for women and 60 for men. However, in December 2022, the country`s President Erdogan canceled a planned increase, enabling over two million workers to retire immediately.
The current situation in Turkey is distinct in that the retirement age remains very low for most workers, and no new changes are currently planned. However, future reforms are possible, related to modifying the pension calculation formula and increasing service duration requirements. Specifically, plans were reported in 2023 to link pension size to the number of insured work days, which could necessitate working longer.
In lower-income countries like Sri Lanka, Indonesia, Bangladesh, and Micronesia, retirement ages are often 55–60. Sri Lanka has one of the lowest at 55, though many continue working past this due to low earnings and limited alternative income sources.
Conversely, Libya`s retirement age reaches 70, influenced by its national social security system and life expectancy.
Analysis by the Organisation for Economic Co-operation and Development (OECD) indicates that men generally retire later than women in most member countries. While 23 nations have equal retirement ages, nine show a notable disparity: Austria and Poland have men retiring around five years later than women, while Romania, Hungary, and Turkey show a difference of three years or more.
“These disparities stem from historical, social, and economic factors, as well as the specific characteristics of pension systems. In some countries, like France, the minimum retirement age was recently raised from 62 to 64, triggering widespread protests and strikes,” explain the specialists.
A key driver behind changing retirement ages is increased life expectancy. In most developed nations, people are living longer, putting greater pressure on pension systems and necessitating a higher retirement age. European countries with average life expectancies exceeding 80 years must balance the financial sustainability of pension funds with social equity.
In the UK, for example, a pension fund policy deputy director noted that increased life expectancy means working longer is necessary to build sufficient pension savings. At the same time, experts emphasize that raising the retirement age should account for variations in health and life expectancy across different social groups.
Raising the retirement age often sparks debate and protests. In countries like France, increasing the minimum age led to large-scale demonstrations and strikes. Elsewhere, such as Denmark, changes are implemented gradually and tied to expected life expectancy, which helps to mitigate social tension.
Meanwhile, in countries with lower incomes and weaker social safety nets, maintaining or lowering the retirement age remains a significant social concern. In nations like Turkey, harsh working conditions and the inability to continue working longer compel many workers to retire early.
