Younger generations in Europe could be working into their seventies as most European countries look set to increase the retirement age over the next decade, studies suggest.
Research by the Finnish Centre for Pensions has found that more countries in Europe are adjusting the retirement age based on life expectancy rather than earnings or contributions. More of us are expected to live longer and therefore, will require more state support.
Data from the European Commission shows that Latvia’s economy will see the largest increase in the ‘costs of ageing’, which could go up by 13 per cent between now and 2070.
Meanwhile, Denmark’s Prime Minister announced on Monday plans to lower the retirement age for certain people who have worked and paid tax for at least 42 years. Denmark currently has one of the highest retirement ages in Europe at 67 years, which is the same for Italy and Greece.
All three of these countries have adopted the life expectancy mechanism for setting retirement age. Whilst in Poland, women can retire from age 60 and in Slovakia, it’s 62 for both men and women.
Projected increase in average retirement age across Europe 2017-2070.
More people now are working beyond the retirement age, either by choosing to reduce their working hours rather than retiring altogether or working part-time whilst receiving their pension.