Across Europe, people are living longer—and policymakers are taking note. Governments have shifted away from encouraging early retirement and are instead introducing policies aimed at extending working lives. While these changes are often framed as necessary for the financial sustainability of pension systems, a Mapineq report reveals that the picture is far more complex.
The report by Marge Unt and Jelena Helemäe is based on a literature review and takes a deep dive into Europe’s changing retirement policies. It examines not only the laws and incentives that shape when and how people leave the workforce, but also how these policies affect older workers’ health and well-being. Here’s what it found, and why it matters.
Working Longer: The push, the pull, and the stay
European countries have taken different approaches to reforming retirement, but many now follow a similar logic: the ageing population means pensions need to be funded for longer, so people should work longer too.
To understand this better, the report uses the “push, pull, and stay” framework. Some situations push people out of the workforce—such as job strain or poor health. Others pull them in, for example through attractive pension bonuses. Then there are “stay” factors that encourage older workers to remain, like flexible working arrangements or supportive workplaces.
However, while these reforms might make economic sense, existing literature suggests it often comes at a social cost. Better-educated and higher-earning workers are more likely to benefit from longer careers and flexible retirement options. Meanwhile, those with lower levels of education or in physically demanding jobs face greater obstacles, deepening existing inequalities.
Health matters—But it’s complicated
One key concern about working into older age is the impact on health. Raising the retirement age might help balance pension books, but how does it affect older people’s physical and mental well-being?
The answer, the literature suggests, is not straightforward. Few studies have properly examined the health effects of raising the pension age, and those that do often show mixed results. Much depends on the kind of work people do, whether retirement is voluntary, and a person’s socioeconomic background.
For example, someone in a well-paid desk job may be able to continue working comfortably into their late 60s. But for a construction worker with health problems, delaying retirement could cause serious harm. The report stresses that policies should take these differences into account, rather than assuming one-size-fits-all solutions.
Towards fairer retirement policies
So where do we go from here?
The report argues that future retirement policies need to do more than simply raise the retirement age. They should address long-standing inequalities, including differences in occupational health, access to flexible work, and gender gaps in pension savings.
It also calls for more research into how retirement reforms affect different groups over time—especially in the wake of the COVID-19 pandemic, which has transformed many aspects of work and health. The goal should be to design policies that make extended working lives a genuine choice rather than an unavoidable burden.
In the end, the report offers a clear message: while keeping pension systems sustainable is important, this goal should not come at the expense of fairness or well-being. Retirement policy needs to be more than a financial fix—it should be part of a broader effort to create a just, supportive, and adaptable society for people of all ages.