The world’s population is ageing, and the retirement age is already trending up.
Research by Societe Generale (SocGen) shows that the retirement age in OECD companies bucked a 35 year downward trend in 2005. It’s been climbing ever since:
According to SocGen, the effective 1.6 year increase over the last 10 years is due to two main factors; rising life expectancies (increased by 8.7 years over the last 25 years), and pressure on global pension funds, which forced policymakers to consider strategies that will keep people in the workforce longer.
Interestingly, Australia has the highest projected working age among the OECD countries listed below, which have estimated what their respective retirement ages will be in the future.
Admittedly, the time period for Australia’s future retirement age (2035) is further away than other countries in the list. But the table is a useful guide for how Australian policy makers are approaching the problem. As an advanced first-world economy, Australia falls in the sweet spot for rising life expectancy with the corresponding threat of a drain on government resources through pension payments.
It follows that an uptick in retirement age will be an almost certainty over the next 20 years.
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