Facing aging populations with fewer younger workers to support pensioners, industrialised countries are considering policies to encourage older employees to work longer, particularly since people have longer life expectancies, says the New York Times.
Western European countries are particularly at risk; by 2050, most European countries will have one worker per retiree. For example:
According to the Organisation for Economic Co-operation and Development, laws in some countries that aim to preserve jobs may cause older workers to lose their jobs. In cases where employers cannot fire younger workers, they may resort to forcing older workers out and into early retirement.
Furthermore, while unemployment rates for elderly workers are typically low, those who are counted as unemployed rarely find jobs. In France and Germany, more than 60 per cent of individuals aged 60 to 64 who are looking for work have been unemployed for over a year.
Some countries are considering major changes, such as reforming systems that make it easier to collect benefits rather than look for work. Italy passed legislation that would raise the retirement age, but it will not take full effect until 2030.
Source: Floyd Norris, With That Longer Life Expectancy Expect a Life of Working Longer, New York Times, October 29, 2005.
For text (subscription required): http://www.nytimes.com/2005/10/29/business/29charts.html
For more on International: http://www.ncpa.org/pi/internat/intdex1.html
FMF Policy Bulletin/ 08 November 2005
