Get Ready to Work Longer Before You Can Retire, OECD Says
(Bloomberg) -- The average retirement age will rise about two years over the next four decades among members of the Organization for Economic Cooperation and Development, thanks to efforts in past years to shore up state-funded pension schemes.
The greatest projected jump will be in countries such as Denmark, Italy and the Netherlands where the retirement age is now linked to life expectancy. Only five members -- including France -- of the OECD’s 35 will have standard retirement ages below 65 by 2060.
The cost of public pensions will continue to grow in some of the OECD’s largest economies, such as the U.S., though the rate of growth will be slower than in the past two decades. Some countries will see drops, especially Greece, which slashed pension rights during the financial crises.
In its annual report on pensions, the OECD warns that members should take further steps to shore up pension systems to cope with demographic changes, greater inequality among senior citizens, and the changing nature of work in a digital economy. With many people switching to non-traditional jobs, a strict fixed retirement age may no longer be in the general interest, it says.
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