You are here: Home Knowledge Base Society Financing Old Age Solutions Raise the eligibility age in statutory private and public pension systems, abolish the mandatory retirement age and maintain the momentum towards ending early retirement.
Symposium 2010

Solution for Financing Old Age

The Challenge

People are living longer, more active and more fulfilling lives. But those additional years mean additional costs as pensions are drawn for longer periods and the costs of surgery, medication, healt ...

People are living longer, more active and more fulfilling lives. But those additional years mean additional costs as pensions are drawn for longer periods and the costs of surgery, medication, healthcare and nursing care continue to soar. So the flipside of the scientific triumph over illness and disease is that many people do not have adequate financial resources to support their longer lives with the desired level of comfort.

Raise the eligibility age in statutory private and public pension systems, abolish the mandatory retirement age and maintain the momentum towards ending early retirement.

After decades of falling, the average pension age in OECD countries has been rising since 2000. Lengthening working lives is an important element of the answer to the challenge of population ageing. This should be encouraged further, with appropriate reforms of the wider welfare system.

To encourage older citizens to remain in the labor market, the incentives to retire early that are built into public and private pension arrangements should be removed, as should barriers and disincentives for older people who want to continue working. Care needs to be taken to ensure that older workers do not opt out of the workforce and claim other benefits, such as incapacity benefit, as a substitute for early retirement.

Mandatory retirement should be abolished and retirees should be allowed to work while drawing benefits. Raising the eligibility age in statutory pension systems, often by a large margin, will also be necessary as a response to increased longevity. It will be justifiable given the improved health of the elderly and the physically less demanding nature of many jobs.

    Related Solutions

    Solution
    Symposium 2010

    Encourage employers to employ and retain elderly workers by removing financial disincentives, such as seniority remuneration schemes and higher employment protection; by applying more flexible working conditions for elderly workers; ...

    Encourage employers to employ and retain elderly workers by removing financial disincentives, such as seniority remuneration schemes and higher employment protection; by applying more flexible working ...

    Encourage employers to employ and retain elderly workers by removing financial disincentives, such as seniority remuneration schemes and higher employment protection; by applying more flexible working conditions for elderly workers; and by improving workers’ employability by encouraging job training and skill enhancement throughout their working lives.

    Polity, Academia, Business, Civil Society
    Solution
    Symposium 2010

    Policy-makers must make pension reform credible and sustainable, by specifying a long-term trajectory of pension contributions and withdrawals, as well as a mechanism that makes this trajectory enforceable and difficult ...

    Policy-makers must make pension reform credible and sustainable, by specifying a long-term trajectory of pension contributions and withdrawals, as well as a mechanism that makes this trajectory enforc ...

    Policy-makers must make pension reform credible and sustainable, by specifying a long-term trajectory of pension contributions and withdrawals, as well as a mechanism that makes this trajectory enforceable and difficult to change in response to political contingencies.

    Polity
    Solution
    Symposium 2010

    Reduce the exposure of individuals to financial risks in funded systems by improving the governance of the pension industry, amending the design of defined contribution plans by promoting life-cycle portfolios ...

    Reduce the exposure of individuals to financial risks in funded systems by improving the governance of the pension industry, amending the design of defined contribution plans by promoting life-cycle p ...

    Reduce the exposure of individuals to financial risks in funded systems by improving the governance of the pension industry, amending the design of defined contribution plans by promoting life-cycle portfolios and greater flexibility in the timing of annuity purchases, and promoting flexible defined benefit plans.

    Polity