NextFin news, The Organisation for Economic Co-operation and Development (OECD) released its 2025 Pensions at a Glance report on November 27, 2025, revealing that over half of its member countries are planning to increase statutory retirement ages. Notably, four countries—including Italy, Denmark, Estonia, and the Netherlands—are proposing to raise retirement ages to 70 years or higher. Currently, Italy’s retirement age stands at 67 but is indexed to rise based on life expectancy gains. The increasing retirement ages aim to address growing demographic pressures as working-age populations in several OECD countries are projected to decrease by over 30% in the next four decades.
This policy trend unfolds amidst a backdrop of rapidly ageing populations. Across the OECD, the ratio of people aged 65 and older to those aged 20 to 64 is slated to increase from 33 in 2025 to 52 by 2050—an indicator of shrinking labor forces supporting rising retiree populations. Countries such as Korea, Greece, Italy, Poland, Slovakia, and Spain face especially steep demographic shifts, intensifying pension system financing challenges. The report also flags significant gender pension gaps, with women receiving on average 23% lower pensions than men, despite gradual reductions over recent years.
Implementation mechanisms for retirement age hikes vary, with some countries linking retirement eligibility to evolving life expectancy metrics to automatically adjust future pension access ages. For instance, Slovenia has legislated a full pension reform where the retirement age without penalty will increase alongside other changes to pension calculation parameters. Additionally, increasing mandatory contribution rates to shore up financial sustainability has been reported in Ireland and Korea, while Japan raised its contribution ceiling.
Financial sustainability considerations underscore these reforms as pension systems fund rising beneficiary numbers with comparatively fewer contributors owing to demographic ageing and slower workforce growth. The average normal retirement age among OECD countries is projected to climb from approximately 64.7 for men retiring in 2024 to 66.4 years for those starting careers in 2024. Future retirement ages range widely, reflecting policy diversity, from 62 years in Colombia and Luxembourg up to 70 or more in Italy and the Netherlands.
These structural reforms are responses to fiscal, demographic, and labor market trends that jeopardize the solvency of pay-as-you-go pension systems. The escalating life expectancy necessitates longer work lives to balance retirement income adequacy with affordability and intergenerational equity. However, significant social and economic implications accompany these shifts, including potentially increased labor market participation demands on older workers and challenges relating to health status and employability at advanced ages.
From an economic perspective, raising retirement ages can alleviate budgetary pressures by reducing pension outlays and prolonging contribution periods. Longer working lives can also enhance individual pension wealth accumulation, supporting retirement income adequacy amid slower wage growth. However, this benefit may not be uniformly distributed. Workers in physically demanding jobs or with limited access to retraining may face hardship, thus increasing the risk of early exit or poverty in old age, exacerbating social inequalities.
Countries are coupling retirement age reforms with complementary measures to improve equity, including enhanced pension credits for childcare in Korea and Slovenia’s restructuring of pension benefit calculations to the best 35 years rather than 24. Such policies seek to mitigate adverse impacts on vulnerable groups, particularly women who disproportionately incur career breaks and wage penalties.
Looking forward, the trend toward later retirement is likely to persist as demographic ageing accelerates. Policymakers will need to balance fiscal imperatives with social protection considerations, promoting policies that encourage lifelong learning, flexible work arrangements, and health interventions to extend productive working lives. Additionally, addressing gender pension disparities remains critical, requiring integrated labor market and pension reforms.
According to the OECD’s comprehensive analysis, countries that combine adaptive retirement age policies with broader social safeguards will be better positioned to maintain pension system sustainability while promoting inclusive economic participation. The reforms reflect an inevitable shift in the social contract around retirement-security paradigms in developed economies.
In sum, OECD countries’ plans to elevate retirement ages reflect a multifaceted policy response to long-term ageing trends, fiscal constraints on pension systems, and evolving labor market dynamics. While raising the retirement age potentially strengthens pension system finances and aligns retirement with increased life expectancy, the socioeconomic impacts require measured and equitable policy design to support diverse worker populations and ensure sustainable and inclusive retirement outcomes.
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