Future Proofing the Longevity Economy 2025

Denmark Estonia Italy Netherlands Sweden Finland Slovak Republic Portugal Iceland Israel Norway Australia United Kingdom United States Germany Belgium Ireland Greece Austria Canada Chile Hungary Japan Mexico New Zealand Poland Spain Switzerland France Lithuania Latvia Czechia Costa Rica South Korea Türkiye Colombia Luxemburg Slovenia57596163656769717375The graph below shows the normal retirement age for men entering the labour market at age 22 with a full career across the OECD. Based on current legislation, retirement ages will increase by about two years for those now entering the workforce. OECD: Future OECD: Current Future CurrentRetirement age is rising in more than half of OECD countries FIGURE 2 SOURCE: OECD. (2023, December 13). Pensions at a glance 2023. https://www.oecd.org/en/publications/2023/12/pensions-at-a-glance-2023_4757bf20.html Challenges with financial education, behavioural hurdles and trust can affect how well retirement systems work. In some countries, trust in public pensions is eroding due to fears of insolvency, causing workers to hesitate to participate in systems they perceive to be unreliable. Lack of financial education can disproportionately affect underserved populations, leaving them unprepared for retirement. Making sound long-term financial decisions can be challenging, especially given individuals’ behavioural hurdles that encourage inertia and short-term thinking. Some tools that retirement systems can use to combat this include auto- enrolment and mandatory participation, which help people overcome inertia, as well as balancing levers such as premiums and tax incentives. By looking at public pension reform holistically, focusing on all aspects of individuals’ lives, priorities and needs, systems can improve retirement outcomes and ultimately enhance financial security for all individuals.Informal and gig workers often fall through the cracks of public retirement systems. Globally, an estimated 60% of workers operate in the informal economy,20 and the gig workforce is growing rapidly. These workers frequently lack access to contributory pension schemes, which depend on stable employer– employee relationships. The irregular nature of gig and informal work also makes it difficult to consistently contribute to retirement savings, leaving workers vulnerable in old age and perpetuating inequalities. Moreover, pension systems often lack portability, making it challenging for workers who change jobs frequently or move across borders to build adequate retirement savings. As gig and informal work reshapes labour markets, public pension systems must evolve to include those workers or risk leaving a growing segment of the population unprotected in retirement. Future-Proofing the Longevity Economy: Innovations and Key Trends 1010