Pensionering

The various economic and social shocks of the past decade and a half – most recently the COVID-19 pandemic – have ongoing consequences for the living standards and prospects of Europeans, and sometimes these outcomes have been uneven across age groups. Social policies – such as those in the areas of social protection and housing – in some cases have benefited certain age groups over others. The upshot both of crises and of policies is that inequalities between the generations have widened in important areas.

This policy brief examines some of the intergenerational social trends that either were persistent or changed considerably over the last decade and a half, sometimes contrary to expectations. It focuses on significant developments that have received somewhat less attention in policy planning in the areas of income, housing, work and employment, and health. The intention is to develop a clearer sense of the direction of social change and bring medium- and long-term perspectives into policy thinking.

Much policy is developed and operationalised through the prism of age, and addressing differences in the economic and social circumstances of different age groups is an ongoing concern of policymakers. This policy brief looks at inequalities in the quality of life of Europeans across six age groups. It examines developments between 2011 and 2016 to assess whether the impact of the economic crisis on quality of life has decreased with the economic recovery, for which age groups and in what countries. The analysis finds that, broadly speaking, older generations enjoy better quality of life than younger age groups in western Europe, while in eastern Europe the younger generations are better off.

Demographic change is changing the face of working life across the EU. The increased demand on a shrinking pool of workers to provide for the social needs of an ageing population is leading to increases in the employment rate of older workers and a lengthening of working life. Policy reforms have – on the whole – focused on raising the statutory retirement age and providing financial incentives for older workers to remain in work beyond retirement age. However, a range of other factors also influence workers’ decision to continue working into old age – including health and well-being, work–life balance, career prospects and job security, and working conditions such as autonomy, hours of work and psychosocial aspects of the workplace. This report analyses these factors in depth for the 28 EU Member States, using data from the latest European Working Conditions Survey (EWCS 2015) and in the context of Eurofound’s concept of ‘sustainable work over the life course’.

Many EU Member States have implemented reforms to improve the sustainability of their pension systems. However, the impact of discouraging early retirement and increasing the pension age on effective retirement ages is limited, as many people are unable or unmotivated to work until pension age. Reduction of working time is one approach to enabling people to work longer than would have been feasible if they continued working full time. But a barrier to reduction of hours is the loss of income. Partial retirement schemes address this barrier by substituting part of the income loss with a partial pension or benefits. This report investigates how partial retirement schemes can contribute to sustainable and adequate pension systems by enabling and motivating people to extend their working lives. It maps schemes at the national and sector levels in the EU and Norway, examines their characteristics and assesses their impact on the extension of working lives. An executive summary is available - see Related content.