Rosalind Evans
As France continues to be engulfed in strikes and protests over President Emmanuel Macron’s proposed pension system changes, we focus on the retirement age standards in other parts of Europe.
France recently underwent another wave of demonstrations and strikes against the government’s proposed pension reform, which involves increasing the legal retirement age from 62 to 64 by 2030. The proposed reform, set to gradually increase the statutory retirement age by three months each year starting in September, will require French workers to put in 43 years of service to qualify for a full pension at 64. Otherwise, they will need to wait until they turn 67. These changes are slated to be implemented by 2027 to make the French pension system financially sustainable amidst an aging population.
The government’s decision has been resisted by opposition parties and unions, who advocate for alternatives, such as increased financial contributions from corporations and wealthy individuals. Despite the backlash, the reform has been pushed through parliament without a vote and is currently under review by the Constitutional Council, which is scheduled to announce on April 14 whether it approves the entire or only parts of the text. This is the final step before the reform can be enacted.
Increasing retirement ages are not exclusive to France, as most Organisation for Economic Co-operation and Development (OECD) nations are also set to raise their standard mandatory retirement ages. So, what are the minimum and maximum retirement ages across Europe? How many years are Europeans expected to spend in retirement, and at what age do they typically leave the workforce? We analyzed the available data to find the answers.
Retirement ages in Europe can be categorized as either early or statutory, with definitions for statutory pension age varying among countries based on pension type, as per the OECD dataset and the Pensions at a Glance report. These reports, which use 2020 figures, also indicate that the retirement age for both genders may be the same in some countries.
Lithuanian men can retire at 59 years old, while German men can retire at 63.7 years old. Women can retire early at 58 in Lithuania and 63.7 in Germany. France, along with countries like Sweden, Portugal, Norway, Italy, Greece, and Austria, has an early retirement age of 62 for both genders.
There is a significant difference between actual and early retirement ages, with men retiring anywhere from 52 years old in Turkey to 67 years old in Norway and Iceland. Across Turkey, Norway, and Iceland, the average retirement age for women is 49 years old.
France’s current retirement age of 64.5 for both genders is slightly higher than the EU average of 64.3 for men and 63.5 for women. However, it is lower than in Germany, where the average retirement age is 65.7 for both genders. In contrast, the lowest retirement ages across Europe, excluding Turkey, are 62 for men and 60 for women.
Countries such as Greece, Italy, Luxembourg, and Slovenia have the lowest retirement ages among EU member states, at 62 for both genders. The retirement age is 65 or over in most European countries with available OECD data.
As the effective retirement age has increased, the number of years expected in retirement has increased significantly. On average, men in OECD countries had 12.0 years of retirement in 1970, which grew to 19.5 years by 2020. Women’s life expectancy at retirement was initially higher, starting at 16.0 years on average in 1970 and increasing to 23.8 years in 2020.
The gender gap in retirement life expectancy varies across Europe, with women typically outliving men in retirement. As of 2020, European women can expect to live 4.3 years longer than men after exiting the workforce, with the EU average being 4.6 years. In France, women are expected to live 3.6 years longer than men after retirement.
The span of retirement life expectancy is highly diverse across Europe. For men, it goes from 14 years in Latvia to 24 years in Luxembourg. For women, it ranges from 18.9 years in Latvia to a high of 28.4 years in Greece. Women in Belgium, France, Greece, Italy, Luxembourg, and Spain can anticipate at least 26 years of retirement.
France ranks prominently in expected retirement years, coming second for men with 23.5 years and third for women with 27.1 years.
Looking ahead to 2060, OECD estimates suggest an average increase of approximately two years in the legal retirement age across member countries. The retirement age for both men and women in Denmark is projected to be 74 years old. For many countries, the retirement age might be 65 or 66 years.
Within the EU, the retirement age is anticipated to reach 66.1 years for men and 65.9 years for women by 2060. In France, both genders are projected to have a retirement age of 66 by the same year.
Retirement ages across Europe demonstrate considerable variation, influenced by factors such as pension systems, life expectancy, and national policies. As countries grapple with aging populations and financial sustainability, increasing retirement age is expected to continue. France’s proposed pension reform has sparked considerable debate and resistance; however, it is just one example of the broader trend of adjusting retirement ages across Europe. As the landscape of retirement continues to evolve, it will be crucial for policymakers to strike a balance between ensuring financial stability and addressing the social and economic needs of an aging population.
