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date: 05 August 2020

Abstract and Keywords

The demographic shifts under way in parts of Europe represent significant challenges from a labor market and pension system point of view. This chapter takes a review of projections of the size and age profile of European populations as its starting point for an investigation of different scenarios of retirement arrangements. As important as numerical changes in the age composition are the favorable trends with respect to education, skills, health, and remaining life expectancy past retirement age of future cohorts of retirees. These trends provide some room in many European countries for retirement policies that encourage a longer working life. Even a moderate increase of the effective retirement age will in many cases stabilize old-age dependency ratios in many European countries.

Keywords: retirement, projections, demography, aging, Europe, old-age dependency ratio

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