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 January 27, 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 January 27, 2015).

Share This


More From ScienceDaily



More Science & Society News

Tuesday, January 27, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

City Divided: A Look at Model Schools in the TDSB

City Divided: A Look at Model Schools in the TDSB

The Toronto Star (Jan. 27, 2015) — Model schools are rethinking how they engage with the community to help enhance the lives of the students and their parents. Video provided by The Toronto Star
Powered by NewsLook.com
WikiLeaks Accuses Google of Handing Over Emails to US

WikiLeaks Accuses Google of Handing Over Emails to US

AFP (Jan. 27, 2015) — Whistleblowing site WikiLeaks accused Google of handing over the emails and electronic data of its senior staff to the US authorities without providing notification until almost three years later. Duration: 01:09 Video provided by AFP
Powered by NewsLook.com
Storm Slams New England, Spares Mid-Atlantic

Storm Slams New England, Spares Mid-Atlantic

AP (Jan. 27, 2015) — A howling blizzard with wind gusts over 70 mph heaped snow on Boston along with other stretches of lower New England and Long Island on Tuesday, but failed to live up to the hype in Philadelphia and New York City. (Jan. 27) Video provided by AP
Powered by NewsLook.com
First U.S.-Based Bitcoin Exchange Goes Live

First U.S.-Based Bitcoin Exchange Goes Live

Newsy (Jan. 26, 2015) — Known as Coinbase, the startup exchange debuted Monday morning, initially causing a spike in bitcoin’s value. 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