Flex­ible paths to retire­ment – an issue also at Euro­pean level.

In recent years, the Europe-wide debate on the ageing of society in the area of pensions has primarily focussed on raising the legal retirement age. With the keyword "silver transformation" and the emphasis on flexible paths to retirement, a paradigm shift seems to be on the horizon, not only in Germany but also at European level. For example, in their exploratory talks, CDU, CSU and SPD recently spoke out against raising the legal retirement age and favoured more flexibility in the transition from work to retirement. Working in old age is also to be made more attractive. In future, an active pension scheme member shall be entitled to an additional tax-free income of 2,000 euros once the standard retirement age has been reached. This shows a shift away from the focus on the standard retirement age towards more flexible paths from work to retirement.

This trend is also evident at European level. On 10 March, the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) discussed the challenges and successful measures for the silver transformation at length. Previously, the European Social Policy Analysis Network (ESPAN) analysed flexible retirement arrangements in the 27 EU countries and Norway in a report and laid down recommendations on their draft. The European Commission will contribute the report's analysis and recommendations to the discussion with the Member States.

What is silver trans­for­ma­tion?

The term "silver transformation" refers to the structural changes associated with an increasingly ageing population. During the debate in the Council, the Ministers from the Member States reiterated the empowerment of older employees for successful prolonged participation in working life. Particularly against the backdrop of technological change and the ecological transformation, more investment is needed in the qualifications and health of older employees. Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness, Roxana Mînzatu, referred in this context to various European Commission initiatives such as the EU Strategic Framework for Occupational Health and Safety or the European Skills Agenda. These initiatives are important for successfully shaping the silver transformation, thus making a significant contribution to Europe's competitiveness.

Extending the working age is not a simple ques­tion of mechanics

The debate surrounding the silver transformation has made it clear that extending the working age is not simply a question of the standard retirement age. Employees leave the labour market for various personal reasons. Work-life balance is also an important issue for older employees. In addition to investment in qualifications and health, the Ministers emphasised the necessity of flexible regulations that let people remain employed for longer. The report published by the European Social Policy Analysis Network (ESPAN) therefore provides useful information.

Based on the country analyses, ESPAN has compiled and analysed the most important regulations, including the most recent reforms from 27 Member States and Norway. Possible effects of these instruments on labour market dynamics, redistribution, sustainable finance and quality of life are assessed. The report concludes with several policy recommendations. These include financial incentives for deferred retirement, the option of combining retirement and work, and differentiated standard retirement ages for employees with long working careers or in physically demanding occupations.

What happens next?

The Polish Presidency aims to adopt Council conclusions on the silver transformation for its presidency, which are to be adopted at the next EPSCO meeting on June 12 and 13.