Shifts in the realized retirement age: Europe in times of pension reform and economic crisis

Abstract:

Many recent policy reforms aimed to delay retirement. Such a delay seems important because population ageing makes it a necessity for financially sound pension schemes and a sufficiently large workforce. However, pension reforms do not only affect when people retire, they likewise affect what influences the realized retirement age. Moreover, the 2008 economic crisis restructured labour markets, thereby affecting retirement.

This article investigates recent shifts in the realized retirement age and influences on it. It does this through multilevel analyses of international data from the Survey of Health, Ageing and Retirement in Europe. It compares individuals who retired in 2005/2006 to those who retired in 2012/2013, thereby identifying changes over time.

Findings show that the realized retirement age increased. Simultaneously, inequalities in the realized retirement age decreased within and between countries. Thus, while the economic crisis reshaped social inequalities, pension reforms constrained the options for retirement.

Consequently, policymakers need not worry about the economic crisis defeating the goals pursued with pension reforms. However, policymakers and researchers do need to consider new inequalities in life courses and the meaning of retirement. Also, researchers need to consider how social change may have altered social mechanisms when conducting literature reviews on retirement.