Future normal and early retirement ages will continue to rise. Assuming labour market entry at age 22 in 2024 the normal retirement age will increase by about two years to 66.4 years for men and 65.9 years for women on average across all OECD countries against 64.7 and 63.9 years, respectively, for retirement in 2024.
Pensions at a Glance 2025
OECD and G20 Indicators
Normal retirement age
Across countries, the average normal retirement age for men with a full career from age 22 in 2024 will be 66.4 years (hence around 2068) based on current legislation against 64.7 years for those retiring in 2024 (Figure 3.8). Meanwhile, the remaining life expectancy of men at age 65 is projected to increase on average from 18.5 to 22.7 years (Chapter 6). So, the average legislated increase in men’s normal retirement ages accounts for slightly more than 40% of the average projected increase in old-age life expectancy.
The normal retirement age of men will increase in half of OECD countries. The highest increase is projected for Türkiye, from 52 currently to 65 years for men. Assuming that legislated life‑expectancy links are applied, the retirement age will increase substantially also in Denmark, from 67 to 74 years, and Estonia, from 64.8 to 71 years. This is also the case for Italy where the retirement age will increase from 63 in 2024 (as mentioned earlier, the retirement age in 2024 is lowered from 67 years) to 70 years. Likewise in Finland, Greece, the Netherlands, Portugal, the Slovak Republic and Sweden future pension ages are also linked to increases in life expectancy with increases in life expectancy of between 2.5 and 6 years expected over the next 50 years. The lowest future retirement age for men equals 62 in Colombia, Luxembourg and Slovenia.
Based on a full career from labour market entry at age 22
Note: See the StatLink.
Source: OECD based on information provided by countries.
Among the nine OECD countries with gender differences in the normal retirement age in 2024, gender gaps will be phased out in Austria, Lithuania and Switzerland for the generation entering the labour market in 2024. In Türkiye, it will be phased out for those entering in 2028. Gender gaps will still remain in Colombia, Costa Rica, Hungary, Israel and Poland, though the gap will narrow in Israel (Figure 3.7). Table 3.6 shows the rules for early, normal and late retirement by pension scheme for a person entering the labour force at age 22 in 2024.
Early retirement
Ignoring schemes with careers starting at a very early age, the early retirement age currently averages 62.5 years across the OECD, just over two years below the normal retirement age of 64.7 years (Figure 3.9). It will increase to 63.9 years, widening the gap with the average the normal retirement age of 66.4 years. Over half of OECD countries will not see any change in the early retirement age for those entering the labour market in 2024 compared to those retiring in 2024. The average effective penalty for retiring one year earlier than the normal retirement age in contributory basic, DB and points-based pension systems is 4.4%, ranging from 2.9% in Switzerland to 7.2% in Canada (Chapter 1). Belgium and Luxembourg as well as Hungary for women are the only countries that do not apply penalties within their earnings-related schemes.
Figure 3.9 also shows the earlier retirement ages that are possible for those that have a full career from an early age. These long-career schemes are not a common practice, but they exist in Belgium, Denmark, France, Italy, Luxembourg, Portugal and Slovenia. It is possible to retire at age 57 in Luxembourg and at age 58 in France and Slovenia though in France contributions would have had to start before age 16. In Italy one can retire at age 59 with 41 years of contributions. In Portugal it is possible at age 60 with contributions from age 14. For Denmark retirement is possible at age 64 if at least 44 years of labour market attachment has been achieved before age 61.
Late retirement
Late retirement can be encouraged through bonuses after the normal retirement age. Such bonuses are typically part of contributory public pension schemes, while residence‑based basic or targeted benefits are generally only available at the normal retirement age. The higher the bonuses, the higher the incentives to work longer. Belgium, Colombia, France (occupational), Greece, Luxembourg and Türkiye currently do not provide a bonus for deferring pension benefits. On average the bonus rate for retiring one year after the normal retirement age is 4.8% across OECD countries, ranging from 1.6% in Costa Rica to 12.0% in Portugal for those with over 40 years of contributions (Table 3.4).
NDC and FDC pensions do not have explicit bonus and penalty rates, but they have built-in adjustments of benefits that can be received every month to the length of the retirement period.
Current and future refer to retiring 2024 and entering the labour market in 2024, respectively
Note: NRA: current and NRA: future refer to retiring in 2024 and entering the labour market in 2024, respectively. For better visibility, the scale of this chart excludes the lowest observed values of 47 for current in Saudi Arabia. Credits for educational periods are not included.
Source: OECD based on information provided by countries; see “Country Profiles” available at http://oe.cd/pag.
Current and future refer to retiring in 2024 and entering the labour market in 2024, respectively
Note: See Table 3.5 and Table 3.6. Chile, Colombia and Mexico are not included as early retirement is possible at any age subject to reaching a minimum benefit level. Early start case involves the career starting well before age 22. Early retirement is not possible in the basic pension in the United Kingdom for both current and future retirees. However, full-career workers starting today will be able to take early retirement within the quasi-mandatory FDC scheme.
Source: OECD based on information provided by countries; see “Country Profiles” available at http://oe.cd/pag.
For an individual with an uninterrupted career after entering the labour market at age 22 in 2024
Note: (M) = men, (W) = women, [a] = depending on age, [l] = depending on length of anticipation or deferral, [y] = depending on number of contribution years, n.a. = early retirement is not available, Min = minimum pension, Occ = occupational, SL = subsistence level reached, T = targeted,. = no data indicated as benefits in DC schemes automatically adjusted to the age of retirement in an actuarially neutral way. Normal and early retirement ages for a scheme describe the ages at which the receipt of a pension, respectively, with and without penalties is first possible, assuming labour market entry at age 22 and an uninterrupted career. Where retirement ages for men and women differ they are shown separately. The reference retirement age used in the modelling has been bolded. Denmark: The bonus rate in the basic/targeted scheme is based on life expectancy at the age of first pension receipt and therefore depends on the length of deferral. Finland: Only partial early retirement on 25% or 50% of accrued pension rights is possible from age 66. Greece: The early retirement penalty applies to those with fewer than 40 years of contributions who retire before the statutory age of 71. Latvia: There is a temporary penalty until the normal retirement age of 50% of the pension. Luxembourg: There is no bonus for postponing retirement, but the accrual rate is higher for each year that the sum of the individual’s age and number of contribution years will exceed 100. Slovak Republic: For women with children the pension age is reduced dependent on the number of children. Credits for educational periods are not included.
Source: OECD based on information provided by countries; see “Country Profiles” available at http://oe.cd/pag.