Lower birth rates and longer lifespans drive OECD populations to age rapidly over 25 years. By 2050, 52 people aged 65+ will exist per 100 aged 20-64, up from 33 in 2025 and 22 in 2000. Korea faces the sharpest rise at nearly 50 points, while Greece, Italy, Poland, Slovakia, and Spain exceed 25 points.
Working-age populations drop over 30% in 10 nations including Estonia, Japan, and Latvia. These shifts cut revenues while boosting age-related spending significantly.
Fiscal Pressures Mount with Declining Workforce Ratios
Working-age groups aged 20-64 fall 13% over 40 years, dragging GDP per capita down 14% by 2060. High public debt and competing needs exacerbate pension strains across OECD countries. OECD Secretary-General Mathias Cormann urges longer, healthier working lives for sustainability. Effective retirement ages must rise to secure old-age finances and economic growth effectively. Current legislation lifts average retirement from 64.7 (men) and 63.9 (women) in 2024 to 66.4 and 65.9 for new entrants.
Retirement Ages Vary Widely Across OECD Nations
Future normal ages span 62 in Colombia, Luxembourg, Slovenia to 70+ in Denmark, Estonia, Italy, Netherlands, Sweden. Full-career average-wage workers gain net pensions at 63% of wages on average. Low replacement rates below 40% hit Estonia, Ireland, Korea, Lithuania hardest. Half-wage workers fare better at 76% average, yet full replacement remains elusive. These trends demand comprehensive reforms urgently.
Gender Pension Gap Persists Despite Some Progress
Women receive 23% lower monthly pensions than men across OECD, down 5 points from 28% in 2007. Lifetime earnings gaps average 35%, driven by employment, hours, wages, and unpaid work disparities.
Survivor pensions cut gaps by one-third in earnings schemes, as women comprise 88% of recipients. Eliminating early women’s pensions where applicable narrows divides further. Labour, family, and pension policies must align comprehensively.
Policy Priorities to Unlock Women’s Labour Potential
Affordable childcare, reduced work disincentives in taxes/benefits, technical training enrolment, and leadership equality boost women. These steps shrink labour market gaps and pension shortfalls effectively. Protecting survivors post-partner death maintains living standards vitally. Countries balancing these strategies enhance equity and system viability significantly.
Implications for Economic Growth and Social Equity
Ageing erodes contributions while demands soar, risking intergenerational inequities. Longer careers preserve financial security amid fiscal squeezes. Gender reforms tap untapped potential, supporting growth and fairness. OECD provides data guiding tailored national responses effectively.
Q&A: OECD Pension Challenges Explained
Q: How fast will OECD populations age by 2050?
A: Elderly ratio rises to 52 per 100 workers from 33 now, with Korea gaining 50 points.
Q: What drags GDP per capita by 2060?
A: 13% working-age drop cuts revenues as age spending climbs amid high debt.
Q: Why does gender pension gap persist?
A: 35% lifetime earnings differences from work patterns and unpaid labour drive 23% shortfalls.
Q: Which countries face steepest workforce declines?
A: Estonia, Greece, Italy, Japan, Korea, Latvia, Lithuania, Poland, Slovakia, Spain over 30%.
Q: How do replacement rates vary?
A: Average-wage workers get 63%; low-wage 76%, but below 40% in some nations.
Frequently Asked Questions (FAQs)
Q1: When was Pensions at a Glance 2025 published?
A: November 2025, analyzing ageing impacts, gender gaps, and reform needs.
Q2: What average retirement age shift occurs?
A: From 64.7/63.9 in 2024 to 66.4/65.9 for new labour entrants.
Q3: Which nations hit 70+ retirement ages?
A: Denmark, Estonia, Italy, Netherlands, Sweden lead with highest future norms.
Q4: How do survivor pensions help women?
A: They reduce gender gaps one-third; women form 88% of recipients.
Q5: What reforms narrow gender divides?
A: Childcare access, tax incentives, training, leadership equality, end early women’s pensions.
OECD Pensions at a Glance 2025 charts urgent paths through ageing pressures and inequities. Longer work, gender reforms, and integrated policies secure sustainable systems for healthier, equitable futures.
