Pensions at a glance
OECD presents study on pension systems.
VS – 12/2023
In
the 2023
edition of Pensions at a glance presented on 13 December, the OECD compares the
pension systems of its member countries every two years. The current edition
focuses on strengthening the sustainability of pension systems and reducing the
shortage of skilled labour by improving employment opportunities and working
conditions for older workers. In this context, measures of the OECD countries
for a longer working phase are presented and discussed. In addition, the
long-term adequacy of the pension systems is analysed.
Demographic
change has several facets. According to the United Nations population projections used in the study, the proportion of the
population aged 65 and over in the OECD region will rise to 27 per cent by
2050. This is due to the retirement of the baby boomers, a low birth rate and
increasing life expectancy. In order to ensure the sustainability of pension
systems and eliminate labour market bottlenecks, the authors therefore argue it
is crucial to promote the employment and employability of older workers.
Labour force participation of older employees
The study shows that many OECD countries
have put together packages of measures to raise the statutory retirement age,
reduce early retirement and incentivise people to stay in work longer and gain
further qualifications. The study shows that the labour market participation of
older people has increased in many countries in recent years. The employment
rate of 55 to 64-year-olds in the OECD reached a record high of 64 per cent in
the second quarter of 2023, almost 8 percentage points higher than ten years ago.
Increase in the standard retirement age – increase in inequality?
The OECD also emphasises that the standard
retirement age is being raised in 23 of the 38 OECD countries. The increase is
a sensitive issue. Not all employees can work until the standard retirement
age. Life expectancy varies greatly according to socio-cultural characteristics,
and this inequality in life expectancy has increased in many countries in
recent years. An increase in the standard retirement age therefore penalises
people with a low life expectancy.
Further training, occupational health and safety, rehabilitation measures and prevention
In this context, the OECD is discussing the
functioning of special early retirement schemes for people in occupations that
are particularly hazardous or arduous. However, particularly stressful
activities are only one reason for the existing inequality in life expectancy.
The authors argue in favour of more
prevention in the workplace combined with retraining measures for employees.
The aim is to get employees out of arduous tasks before their health
deteriorates significantly. Support for people with work-related health problems
should be provided as early as possible, and not via special old-age pension
schemes for hazardous or arduous work.
Education and further training as well as
health protection in the workplace are also crucial in order to meet the
changing challenges of working life, thus being able to participate longer in
working life.
Social investment
The OECD study shows that the demographic
challenges facing pension systems are manageable. However, there is no
all-in-one solution for all problems. This applies in particular to the
increase in the standard retirement age which is highly controversial in the
public debate.
In contrast, a bundle of measures is
required. In particular, by investing in people's professional and
health-related skills. The current OECD study underpins the "Future of
Social Protection and the Welfare State in the EU” discussion initiated by the High
Level Expert Group on social investment over the course of a lifetime. A
discussion that the outgoing Spanish and incoming Belgian Council Presidencies
have taken up in a joint Initiative
on Social Investment.