Income from work after retirement: exploring policy lessons Symposium organised by Eurofound IFA conference 29 May 2012, Prague

Work after retirement: needs, interest & opportunities Outline: 1. Trend in paid work after retirement in the EU27 2. Why have retirees been taking-up work? 3. Who are these working retirees and what do they do? IFA conference symposium “Income from work after retirement: exploring policy lessons” 29 May 2012, Prague Hans Dubois Eurofound, Living Conditions & Quality of Life unit This presentation is based on: Eurofound (2012, forthcoming) Income from work after retirement. Dublin: Eurofound.

More than 1 out of 10 Europeans between does paid work. Up from 8.9% (2005Q4) to 10.8% (2011Q4). 1. TREND IN PAID WORK AFTER RETIREMENT IN THE EU27 %-point increase employment rate year olds 2005Q4 vs 2011Q4

The drivers of work after retirement WORK? a) Need b) Interest Strength of each driver’s impact depends on individual & regional situations. c) Opportunities 2. WHY HAVE RETIREES BEEN TAKING-UP WORK?

Income  Lower than before retirement  Pensions are the principal source for most Europeans Cost  Health, mortgages  Public cuts increased cost for most A)FINANCIAL NEED

Difficulties (some to great) with making ends meet, 65+ (2010) Source: SILC data from Eurostat online database, downloaded 20 Feb 2012

Longer run: adaptation of pension systems, increased employment among younger cohorts and increased productivity can contribute to solving inadequacy More immediate: retirees have been taking up paid work Not only because of financial need, but also because many want to work after the retirement age…

B) INTEREST 33% wants to continue working after official retirement age, especially those closer to retirement 8 Source: Special Eurobarometer 378

Would enjoy paid job, even if you don’t need the money** (2010) JobAgree47%51%64% Disagree34%33%21% No jobAgree57%47%48% Disagree25%33% In the EU27, around 1/5 works purely because of financial need

Labour market  Sufficient jobs  Suitable jobs (e.g. skills mismatch) Individual  Health  Caring commitments  Skills Company/government/collective labour agreements (institutional structures)  Supporting services (public/private)  Age-adapted workplaces  No discrimination against older workers  Flexible work arrangements  Financial (fiscal, benefits) & legal arrangements Society  Cultural: perceived to be ‘normal’/’acceptable’ C) OPPORTUNITIES

Who are they? % employed, EU27, years* 2006Q42011Q4 Female Male % employed, EU27* 2006Q42011Q Mainly male Mainly healthy, relatively young retirees Highly educated (& living in urban areas) more likely to continue working, but many lower educated as well, and medium is the group which shows most growth % employed, EU27, years* 2006Q Q Pre-primary, primary and lower secondary Upper- and post- secondary non-tertiary Tertiary Sources: * Calculated from LFS data from Eurostat online database, ** Eurofound analysis of ESS data 3. WHO ARE THESE WORKING RETIREES AND WHAT DO THEY DO? 3. WHO ARE THESE WORKING RETIREES AND WHAT DO THEY DO?

What do they do? Most: Source: Calculated from LFS data from Eurostat online database Self-employed  more likely self-employed continue working - not accumulate enough pension - work more enjoyable and more important role in life - succession issues  salaried more often become self-employed in retirement than vice versa - fulfil dream - most attractive working conditions - contractual formality, while effectively ‘salaried’ - no alternative Part-time Temporary Often in agriculture/fishery, rarely in public administration

Clusters of working retirees

Thank you! Dublin, Ireland