income from work after retirement: exploring policy lessons
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Income from work after retirement: exploring policy lessons. S ymposium organised by Eurofound IFA conference 29 May 2012, Prague. Work after retirement: needs, interest & opportunities. Outline: 1. Trend in paid work after retirement in the EU27 - PowerPoint PPT PresentationTRANSCRIPT
Income from work after retirement: exploring policy lessons
Symposium organised by EurofoundIFA conference
29 May 2012, Prague
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 DuboisEurofound, Living Conditions & Quality of Life unit
This presentation is based on: Eurofound (2012, forthcoming) Income from work after retirement. Dublin: Eurofound.
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More than 1 out of 10 Europeans between 65-69 does paid work.Up from 8.9% (2005Q4) to 10.8% (2011Q4).
1. TREND IN PAID WORK AFTER RETIREMENT IN THE EU27
%-point increase employment rate 65-69 year olds 2005Q4 vs 2011Q4
The drivers of work after retirement
WORK?
a) Need
b) Interest
Strength of each driver’s impact depends on individual & regional situations. c)
Opportunities
2. WHY HAVE RETIREES BEEN TAKING-UP WORK?
• Income Lower than before retirement Pensions are the principal source for most Europeans
• Cost Health, mortgages Public cuts increased cost for most
A) FINANCIAL NEED
Difficulties (some to great) with making ends meet, 65+ (2010)
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Source: SILC data from Eurostat online database, downloaded 20 Feb 2012
• 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…
B) INTEREST33% wants to continue working after official retirement age, especially those closer to retirement
8Source: Special Eurobarometer 378
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%
In the EU27, around 1/5 works purely because of financial need
• 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’
C) OPPORTUNITIES
Who are they?
% employed, EU27, 65-69 years*2006Q4 2011Q4
Female 6.6 8.0Male 12.3 13.9
% employed, EU27*2006Q4 2011Q4
65-69 9.2 10.870-75 4.4 5.2
Mainly male
Mainly healthy, relatively young retirees
Highly educated (& living in urban areas) more likely to continue working, but many lower educated as well, and medium is the group which shows most growth
% employed, EU27, 65-69 years* 2006Q4 15-64 65-69
2011Q4 15-64 65-69
Pre-primary, primary and lower secondary 48.4 8.4 44.6 8.5Upper- and post-secondary non-tertiary 69.4 9.7 68.1 10.5Tertiary 83.2 19.0 81.8 18.1
Sources: * Calculated from LFS data from Eurostat online database, ** Eurofound analysis of ESS data
3. WHO ARE THESE WORKING RETIREES AND WHAT DO THEY DO?
What do they do? Most:
Source: Calculated from LFS data from Eurostat online database
• 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
Clusters of working retirees
