The OECD predicts an increase in the retirement age

The Organization for Economic Co-operation and Development (OECD) has published its annual report on pensions (Pensions at a Glance 2021), which provides for an increase in retirement age by almost 1.5 years by 2035 and a total of 2.8 years by in 2050.

This means that from the current 62 years, after 40 years of work, the general age limit will jump to almost 65, after 29 years. The increase will start to be seen from 2035.

The reason for this forecast is, according to the report, the expected increase in life expectancy.

Providing economically and socially sustainable pensions in the future continues to be the biggest challenge for OECD member countries, according to the report.

The current legislation provided that from 1/1/2021 the first process of adjusting the age limits with a reference point of 65 years and based on the change in life expectancy during the decade 2010-2020 should begin. From 1/1/2024 the age limits will be redefined every three years, always based on life expectancy.

The report reiterates that the coming years will be difficult. By 2050, the number of retirees corresponding to every 100 employees will double. That is, while in 1990 the ratio was 22.9 people over 65 per 100 employees, in 2020 the ratio was found at 37.8 and in 2050 it will reach 75.

The projected working age population (20-64 years) will decrease by 10% in OECD countries by 2060, ie by 0.26% per year. In Greece, as well as in Japan, Korea, Latvia, Lithuania and Poland, it will decrease by 35%, while more than 25% will decrease in Estonia, Hungary, Italy, Portugal, Slovenia, Slovakia and Spain.

Nevertheless, the forecast for the increase of the birth rate creates optimism, at 1.37 by 2040 from 1.3 births per woman in Greece in 2020 and 1.54 by 2060.