Which country has the oldest retirement age in the world?

As global life expectancy increases, many countries are adjusting their retirement policies to ensure financial sustainability. This has led to a race to the top for pensionable age, prompting the question: Which country has the oldest retirement age in the world? The answer reveals important demographic and economic shifts reshaping the future of retirement worldwide.

Quick Summary

Several countries have the highest official retirement age globally, with Denmark and Libya tied at age 70 for full pension access. These nations lead a growing trend driven by increased longevity, falling birth rates, and the financial pressures on government-funded pension systems.

Key Points

• Denmark and Libya: These two nations are currently tied for having the highest official retirement age in the world at 70 years old.

• Driving Factors: Rising retirement ages are primarily driven by increasing life expectancy, declining birth rates, and the fiscal pressures on national pension systems.

• Global Trend: Many other countries, including Iceland, Israel, and Norway, also have high retirement ages, with many tying increases to life expectancy.

• Official vs. Effective: There is often a significant difference between the government-mandated official retirement age and the actual average age people stop working.

• Impacts on Workers: Higher retirement ages can disproportionately affect workers in physically demanding jobs, raising concerns about equality and well-being.

• Future Outlook: The ongoing demographic changes suggest that retirement ages will likely continue to rise globally, reshaping how societies and individuals plan for later life.

Denmark and Libya share the top spot, but the full picture is complex

In recent years, Denmark has made headlines for its phased increase of the official state pension age. According to financial experts, Denmark is set to reach a retirement age of 70, placing it alongside Libya at the top of the list for the highest official retirement age. This represents a significant shift from historical norms and highlights the demographic and economic pressures driving retirement policy changes across the globe.

The reasons behind rising retirement ages

Several key factors are contributing to the global trend of increasing retirement ages. These forces are primarily rooted in demographic shifts and fiscal realities that challenge traditional pension models.

• Increased life expectancy: People are living longer than ever before. Advances in healthcare and living standards mean that retirement periods have significantly expanded, putting a strain on pension systems designed for shorter life spans.
• Declining birth rates: In many developed nations, fertility rates have fallen, resulting in a shrinking workforce that must support a growing number of retirees. This imbalance threatens the long-term solvency of pay-as-you-go pension schemes.
• Economic pressure: Governments face mounting costs related to aging populations, including healthcare and pension expenditures. Raising the retirement age is a key strategy to contain these costs and ensure the financial sustainability of public programs.

Other countries with high retirement ages

While Denmark and Libya currently lead, many other countries are also implementing high or increasing retirement ages. Several nations have their official retirement age set at 67, with some having plans for further increases based on life expectancy:

• Iceland: Currently, the retirement age is 67, though the effective retirement age tends to be slightly lower.
• Israel: The retirement age is 67 for men and is being gradually increased for women to reach 65.
• Norway: The general retirement age is 67, but early retirement is possible from age 62 for those with sufficient pension contributions.
• Italy: With a retirement age of 67, Italy is among the European countries with the highest age requirement.
• Australia: Like many others, Australia has raised its retirement age to 67 to ensure the viability of its pension system.

Official vs. effective retirement age

It is important to distinguish between a country's official retirement age and its effective retirement age. The official age is the government-mandated minimum for receiving full pension benefits. The effective retirement age, however, is the average age at which workers actually leave the labor force. In many cases, these figures can differ significantly due to factors like personal health, financial security, and the nature of one's employment. For example, some countries with lower official retirement ages, such as Indonesia, have been noted to have higher effective retirement ages, with people working into their late 60s. Conversely, some workers in countries with high official ages may retire earlier with reduced benefits.

International retirement age comparison

Country	Official Retirement Age	Notes
Denmark	70 (in transition)	Expected to be tied for the highest, with future adjustments linked to life expectancy.
Libya	70	Set at 70 for both men and women.
Iceland	67	Often cited among the highest official ages.
Israel	67 (men), 65 (women)	The age for women is being gradually increased.
Italy	67	A high European retirement age.
United States	67 (for those born 1960 or later)	Phased increase from 65 to 67, completed in 2026.
United Kingdom	66	Will increase to 67 by 2028 and 68 by 2037.
China	63 (men), 55-58 (women)	Phased increases announced in 2024 to take effect in 2025.
France	64	Increased from 62 in 2023, phased in through 2030.
Japan	65 (state pension)	Early retirement prevention is a focus.

The broader implications for aging

As societies grapple with these evolving retirement dynamics, the focus is shifting beyond just policy changes. The societal implications are vast and touch on public health, financial stability, and workforce participation. It is increasingly important for individuals to prioritize their health throughout their working lives to support a longer and more active retirement. Access to quality healthcare, physical activity, and mental engagement are all crucial components of planning for a successful and healthy extended working life.

To learn more about the broader context of pension systems and aging populations, an authoritative source like the Organisation for Economic Co-operation and Development (OECD) is an invaluable resource. The OECD publishes regular reports and data on global pension trends, providing detailed analysis of how different countries are adapting to demographic shifts. For more detailed information on global pension reform, see the OECD's website.

Conclusion

The question of which country has the oldest retirement age in the world is not static. While Denmark and Libya are currently at the top with an official retirement age of 70, the trend is a global one, with many nations steadily raising the age at which citizens can access their full state pension. This reflects the reality of increased longevity and the economic necessity of adapting social security systems for the 21st century. The implications are profound, affecting not just government policy but also individual financial and health planning for decades to come.

Frequently Asked Questions

What is the difference between a country's official and effective retirement age?

The official retirement age is the government-mandated age at which you can receive full state pension benefits. The effective retirement age is the average age when people actually stop working, which can be influenced by various factors like health, financial situation, and type of work.

Why are retirement ages increasing around the world?

Retirement ages are increasing due to rising life expectancy, declining birth rates, and the resulting fiscal pressures on pension systems. As people live longer and fewer young workers support more retirees, governments raise the age to ensure the system's sustainability.

How does the rising retirement age affect individuals?

A higher retirement age means people must work longer, which impacts financial planning, health considerations, and career longevity. It can disproportionately affect those with physically demanding jobs and requires individuals to be more strategic about saving and wellness.

How does Denmark's retirement age compare to the United States?

Denmark's retirement age is increasing to 70, while the full retirement age in the United States is 67 for those born in 1960 or later. This means Danes will be expected to work three years longer than their American counterparts.

Is the retirement age the same for men and women globally?

No, in some countries, there are still differences in retirement age based on gender, with a lower age for women. However, many nations are moving toward equalizing the retirement age for both genders, as seen in Israel and planned in the UK.

What happens if I retire before the official retirement age?

In many countries, including the United States and Norway, you can opt for early retirement, but it typically comes with a reduction in your monthly pension or social security benefits. The percentage of the reduction depends on how early you retire.

Does working past the official retirement age offer any benefits?

Yes, in many pension systems, delaying your retirement and claiming benefits later can result in a higher monthly payout. In the U.S., for example, delaying benefits until age 70 can significantly increase your monthly check.