This document summarizes trends in paid work after retirement in the EU27 based on a presentation given at an IFA conference in Prague. It finds that over 1 in 10 Europeans aged 65-69 currently does paid work, up from 8.9% in 2005 to 10.8% in 2011. The main drivers for this increase are financial need, interest in continuing to work, and available opportunities. Those most likely to work after retirement tend to be healthy, educated individuals living in urban areas, though participation is growing among other demographic groups as well. Most post-retirement work is part-time, temporary, or involves self-employment, often in agriculture, fishery or other sectors besides public administration.
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1. Income from work after retirement:
exploring policy lessons
Symposium organised by Eurofound
IFA conference
29 May 2012, Prague
2. Work after retirement:
needs, interest & opportunities
Outline:
1. Trend in paid work after retirement in the EU27
2. Why have retirees been taking-up work?
3. Who are these working retirees and what do they do?
IFA conference symposium
“Income from work after retirement: exploring policy lessons”
29 May 2012, Prague
Hans Dubois
Eurofound, Living Conditions & Quality of Life unit
This presentation is based on: Eurofound (2012, forthcoming) Income from work after retirement. Dublin: Eurofound.
3. 1. TREND IN PAID WORK AFTER
RETIREMENT IN THE EU27
%-point increase employment rate 65-69 year olds
6 2005Q4 vs 2011Q4
4
2
0
Italy
Spain
Finland
EU27
Belgium
UK
Netherlands
Hungary
Greece
Estonia
Poland
Latvia
Germany
France
Denmark
Portugal
Austria
Sweden
Ireland
Bulgaria
Slovakia
Slovenia
Czech Republic
Cyprus
Romania
Lithuania
-2
-4
-6
More than 1 out of 10 Europeans between
-8 65-69 does paid work.
Up from 8.9% (2005Q4) to 10.8% (2011Q4).
-10
4. 2. WHY HAVE RETIREES BEEN
TAKING-UP WORK?
The drivers of work after retirement
a)
Need
Strength of each driver’s impact depends
on individual & regional situations. c)
Opportunities WORK?
b)
Interest
5. A) FINANCIAL NEED
• Income
Lower than before retirement
Pensions are the principal source for most Europeans
• Cost
Health, mortgages
Public cuts increased cost for most
6.
7. • Longer run: adaptation of pension systems, increased
employment among younger cohorts and increased
productivity can contribute to solving inadequacy
• More immediate: retirees have been taking up paid work
• Not only because of financial need, but also because
many want to work after the retirement age…
8. B) INTEREST
33% wants to continue working after official retirement
age, especially those closer to retirement
8
Source: Special Eurobarometer 378
9. In the EU27, around 1/5 works purely because of
financial need
Would enjoy paid job, even if you don’t need the money** (2010)
14-54 55-64 65+
Job Agree 47% 51% 64%
Disagree 34% 33% 21%
No job Agree 57% 47% 48%
Disagree 25% 33% 33%
10. C) OPPORTUNITIES
• Labour market
Sufficient jobs
Suitable jobs (e.g. skills mismatch)
• Individual
Health
Caring commitments
Skills
• Company/government/collective labour agreements (institutional
structures)
Supporting services (public/private)
Age-adapted workplaces
No discrimination against older workers
Flexible work arrangements
Financial (fiscal, benefits) & legal arrangements
• Society
Cultural: perceived to be ‘normal’/’acceptable’
11. 3. WHO ARE THESE WORKING RETIREES
AND WHAT DO THEY DO?
Who are they?
% employed, EU27*
2006Q4 2011Q4
65-69 9.2 10.8
Mainly healthy, relatively young
70-75 4.4 5.2 retirees
% employed, EU27, 65-69 years*
2006Q4 2011Q4 Highly educated (& living in urban
15-64 65-69 15-64 65-69
Pre-primary, primary areas) more likely to continue
and lower secondary 48.4 8.4 44.6 8.5
Upper- and post- working, but many lower educated as
secondary non-tertiary 69.4 9.7 68.1 10.5
Tertiary 83.2 19.0 81.8 18.1
well, and medium is the group which
shows most growth
% employed, EU27, 65-69 years*
2006Q4 2011Q4
Female 6.6 8.0 Mainly male
Male 12.3 13.9
Sources: * Calculated from LFS data from Eurostat online database, ** Eurofound analysis of ESS data
12. What do they do? Most:
• Self-employed
more likely self-employed continue working
- not accumulate enough pension
- work more enjoyable and more important role in life
- succession issues
salaried more often become self-employed in retirement than vice versa
- fulfil dream
- most attractive working conditions
- contractual formality, while effectively ‘salaried’
- no alternative
• Part-time
• Temporary
• Often in agriculture/fishery, rarely in public administration
Source: Calculated from LFS data from Eurostat online database