Context
Longer life expectancy and ageing populations are provoking a rethink for governments and businesses. Many countries are gradually raising the legal retirement age to ensure the viability of their pension schemes. This is the case in most European countries, but also in China, which began the process on 1 January 2025. In spring 2024, Singapore also announced an increase in the retirement age from 63 to 64, with effect from 1 July 2026, while the OECD suggested that Costa Rica raise it to 67 (the retirement age is currently 65 for men and 63 for women). The corollary of this change of direction is a more or less marked increase in the employment rate of employees over 55. ‘We’re seeing this in France, for example, following the 2010 reform that raised the statutory retirement age from 60 to 62,’ explains economist Stéphane Carcillo, head of the OECD’s Employment and Income Division. However, in most countries, the employment rate for the over-55s remains well below that of the 45-54s, and falls sharply from the age of 60 onwards, reflecting the difficulty of getting older workers into work or keeping them there. employment rate of employees over 55.
Challenges
‘How can we avoid a situation in which, as the retirement age rises, more and more workers at the end of their careers find themselves without a job or a pension?’ expressed the concern of the CFDT in a letter to its members in June 2024. The French union pointed to the increase in the number of people aged 60-64 finding themselves in this situation (unemployment, disability): up 2.3 points between 2014 and 2023. The figures show that raising the age limit does not in itself bring about a sufficiently significant increase in the employment rate of older employees, and makes certain categories of employees more vulnerable. ‘Some people, particularly the least qualified and least educated at the outset, who are also the least capable of lifelong learning, may find it difficult to remain in the labour market in the short term’, acknowledges Stéphane Carcillo. The main challenge facing governments and businesses is above all that of ensuring the employability and health at work of people as they age. The latest mind RH studyd shows that the countries with the highest employment rates among 55-64 year-olds, such as Iceland, Sweden, Denmark and the Netherlands, are also those with the highest rates of training among this age group. This is also highlighted in the latest report on the subject published by Eurostat. It notes that the countries with the highest rates of employment of older workers have not only introduced flexible retirement schemes and good working conditions, but also value the skills of such individuals. These countries have focused their efforts on training, in particular to anticipate the professional wear and tear suffered by employees in arduous occupations.
Keeping older workers in employment is becoming increasingly essential amid the labour shortage now affecting a large number of countries, particularly in the EU. Aware of this pressure, some European countries have recently introduced measures to adapt skills and facilitate professional retraining.
