Featured Research

from universities, journals, and other organizations

To avoid very high pension ages, enable more to work

Date:
March 5, 2014
Source:
International Institute for Applied Systems Analysis
Summary:
A new study shows that in most European countries, if labor force participation rates remain at current levels, by 2050 it would be necessary to raise pension ages above age 68.

A new IIASA study shows that in most European countries, if labor force participation rates remain at current levels, by 2050 it would be necessary to raise pension ages above age 68.

Related Articles


The new research, which was published in the journal Demographic Research, shows that increasing labor force participation by as little as 1 or 2 percentage points could allow pension ages to be reduced by one year without increasing the burden on the working population.

"Coping with aging populations is a challenge for most developed countries," says IIASA population expert Sergei Scherbov, who co-led the study with Warren Sanderson, a researcher at IIASA and Stony Brook University.

In Europe and many other areas of the developed world, birth rates have dropped while life expectancies have increased, leading to a larger number of older people. When a greater proportion of the population is older, they rely more heavily on the younger working population to finance their pensions and healthcare. One way to fix the problem is to raise the retirement age, but this has proven unpopular.

A more effective strategy, says Scherbov, is to introduce policies to help more people join the workforce. Such policies include incentives to remain in the labor force, anti-age discrimination policies, reforming tax policy so as not to penalize workers, removing financial incentives to retire early, and careful management of disability pension systems.

"These policies are generally more politically palatable because they often remove barriers, allowing people who would like to work to do so," says Scherbov.

The new study for the first time estimated the trade-off between pension age and labor force participation policies.

Scherbov says, "In many European countries, without new policies to increase labor force participation rates, normal pension ages would have to be raised well above 68 by 2050 to keep the burden on those working similar to the current burden."


Story Source:

The above story is based on materials provided by International Institute for Applied Systems Analysis. Note: Materials may be edited for content and length.


Journal Reference:

  1. Sergei Scherbov, Warren C. Sanderson, Marija Mamolo. Quantifying policy tradeoffs to support aging populations. Demographic Research, 2014; 30: 579 DOI: 10.4054/DemRes.2014.30.20

Cite This Page:

International Institute for Applied Systems Analysis. "To avoid very high pension ages, enable more to work." ScienceDaily. ScienceDaily, 5 March 2014. <www.sciencedaily.com/releases/2014/03/140305110925.htm>.
International Institute for Applied Systems Analysis. (2014, March 5). To avoid very high pension ages, enable more to work. ScienceDaily. Retrieved February 26, 2015 from www.sciencedaily.com/releases/2014/03/140305110925.htm
International Institute for Applied Systems Analysis. "To avoid very high pension ages, enable more to work." ScienceDaily. www.sciencedaily.com/releases/2014/03/140305110925.htm (accessed February 26, 2015).

Share This


More From ScienceDaily



More Science & Society News

Thursday, February 26, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Apple Ordered to Pay $533 Mln

Apple Ordered to Pay $533 Mln

Reuters - Business Video Online (Feb. 25, 2015) A Texas jury ruled that Apple&apos;s iTunes software infringed three patents. Apple says it&apos;ll appeal. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com
Mayor Says District of Columbia to Go Ahead With Pot Legalization

Mayor Says District of Columbia to Go Ahead With Pot Legalization

Reuters - News Video Online (Feb. 25, 2015) Washington&apos;s mayor says the District of Columbia will move forward with marijuana legalization, despite pushback from Congress. Rough Cut (no reporter narration). Video provided by Reuters
Powered by NewsLook.com
GOP Voices Concern Over Net Neutrality Vote

GOP Voices Concern Over Net Neutrality Vote

AP (Feb. 25, 2015) The debate surrounding net neutrality was on full display at a congressional hearing Wednesday, a day before the FCC is set to vote on on whether to put Internet service in the same regulatory camp as telephone communications. (Feb. 25) Video provided by AP
Powered by NewsLook.com
Marijuana Nowhere Near As Deadly As Alcohol: Study

Marijuana Nowhere Near As Deadly As Alcohol: Study

Newsy (Feb. 25, 2015) A new study says marijuana is about 114 times less deadly than alcohol. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins