Retirement Around the World: 25 Fascinating Facts

Retirement as we know it is a relatively new phenomenon, brought on by a combination of longer life spans, changing attitudes about work, government social programs, and the rise of a middle class. Yet despite its newness, retirement has become quite entrenched in American society and is now a common rite of passage for older adults. Of course, Americans aren’t the only ones who’ve taken up the idea of retirement (nor the ones who invented the concept, as you’ll learn), as millions of seniors from around the world retire from their careers every year.

While retirement is a reality for older adults in nearly every industrialized nation in the world, what it means to them and for the demographics of their country can vary widely. Here, we take a look at some of the social and statistical research that’s been done on retirees around the world, highlighting some of the most intriguing facts and figures. Read on to learn more about what retirement means for the seniors of today — and quite possibly for you, as you head toward your golden years.

1. Average retirement ages vary widely from country to country

   In the U.S., as in many other nations, 65 has long been the standard retirement age. While that is changing at home and abroad in response to budget issues and increased life spans, there has always been a bit of a difference in retirement age norms around the world. At the upper and lower ends of the scale are Mexico and France, with Mexicans retiring on average at 73 and the French much earlier at 58.7. Austria, Luxembourg, and the Slovak Republic round out the low end while Korea, Japan, and Iceland are on the high.

2. 80% of seniors want to scrap mandatory retirement and 75% want to keep working in their maturity

   Turns out that most of the world’s workers don’t want to turn over their careers to the younger generation once they reach retirement age. The vast majority of those in a worldwide survey stated that they wanted to keep working well into their golden years and didn’t feel that mandatory retirement was fair. Young people might disagree, as retirement in many parts of the world was initially a product of government efforts to move older workers out of the workforce in order to open up jobs for the next generation.

3. Surveys reveal that retirees in Japan, Canada, Brazil, China, and India highlight the importance of family in retirement

   Retirement doesn’t mean the same thing to people from all countries around the world. An international survey found that people from different cultures, naturally, held different aspects of retirement in high regard. For those from Asian nations, as well as Brazil and India, being able to spend time with family and have their help was one of the things retirees most valued and looked forward to.

4. Those in the U.S., Mexico, and Japan are most likely to see old age and retirement as a time to change careers

   Retirement may mean quitting one career, but for those in the U.S., Mexico, and Japan, it often means starting another. Many of those surveyed in these nations saw retirement as a chance to pursue lifelong career dreams or to work on gaining additional financial stability.

5. Other nations are more likely to focus on relaxing and resting in old age

   Retirees in China, Hong Kong, and Brazil were more likely to value slowing down and resting in retirement than those from many other nations. Many surveyed reported the desire to enjoy accumulated wealth, spend more time with family, and simply slow down outside of the working world.

6. Germany was the first country to introduce publicly sanctioned retirement

   In 1889, Otto von Bismarck introduced the first pension for workers over 70. The measure was not only meant to care for those in old age, but also to undermine a much more radical socialist movement that was brewing in the country. Regardless of the motives, it paved the way for many later social insurance programs, including Social Security in the U.S.

7. Seniors in the Netherlands are among the world’s most likely to end up living in a retirement home

   Retirement for many in this European nation may mean shacking up at a retirement home. A study in 1993 found that 24% of adults over 65 in the Netherlands were living in retirement homes or supportive housing. Compared to just 6.6% in Australia, 2.3% in Canada, and 2.1% in the U.S., that figure is pretty high. Of the five nations studied, retirees in the Netherlands were the least likely to live independently in their own homes. Interestingly enough, rates for the number of elderly individuals in nursing homes (with high levels of care) were similar across the board. More recent studies have produced similar results.

8. The sex ratio of males to females over 85 is 39 to 100

   It’s common knowledge that women live longer than men, but when you look at the numbers, the differences can be quite shocking. For every 100 women in the world who are over 85, there are only 39 men. That might make dating in old age pretty difficult for many women in their mid-eighties unless, of course, they aim for younger men.

9. In the U.S., Florida has the highest percentage of adults over 65

   In fact, a whopping 19% of the state’s population is older than retirement age. That should come as no surprise, as the state is widely known for its large number of retirement communities. While Florida enjoys the largest percentage of retirees, the greatest total number is found in California which is home to 3.3 million (and growing) seniors.

10. Worldwide, Japan has the highest percentage of seniors

    With some of the longest life spans in the world, it shouldn’t be particularly surprising that there are so many elderly in Japan. A 2008 survey revealed that 22% of Japan’s citizens are in this age group, surpassing the previous record holder, Italy. Need a comparison? In the U.S., only 15% of the population is 65 or older.

11. Those in France are most likely to retire early

    The French are famous for their fine cheese and wine, and surveys show that they’re more likely than any group in the world to get a few extra years of retirement to relax and enjoy their Brie and Burgundy. The average retirement age in France is 58.7, despite the official retirement age being set at 60 (and 65 for full benefits). The French value their early retirement pretty heavily, as well, as there were numerous protests in response to the government raising the retirement age by two years in late 2010, making the official early retirement age 62. Early retirement is also pretty widespread, as only 20% of French men are still in the workforce at ages 60 to 64.

12. China’s population is graying more rapidly than anywhere in the world

    The U.S. might be prepping for some major demographic changes and budget issues as the Boomer generation reaches retirement over the next decade, but those concerns are small compared to the challenge China faces. The one-child policy has drastically reduced the number of young people born in China, skewing the age demographics of the country toward older adults. Currently, China’s population is aging faster than any other country in the world, and by 2050 it is projected that more than a third of the population will be over 60. Experts fear that government-provided pension plans won’t be able to support the impending tide of retirees, especially with many young people moving away to seek out opportunities abroad.

13. What a pension means for retirees varies quite a bit

    Pension plans are quite different from nation to nation. In the U.S., male workers can expect to retire at 65 and receive a pension that averages $253,890. That same worker would get an average of $465,850 in Germany (at age 65), $66,360 in China (at age 60), $444,540 in France (at age 60), and $199,800 in Brazil (at age 65). Even with living costs taken into consideration, some places offer a much more enticing pension than others.

14. In 2000, approximately 605 million people were 60 years or older. By 2050, that number is expected to be close to 2 billion

    Now might be a good time to learn to respect your elders. The world is graying at a rapid pace, and by 2050 it is projected that seniors will outnumber children 14 and under for the first time in history.

15. All around the world, retirement ages are being raised

    Due to longer life spans and some pretty serious budgetary problems, nations around the world are raising the official retirement age (often commensurate with the age required to collect a state-managed pension). In most countries the minimum age has been 65 to collect full benefits, but for those retiring over the coming decade, it could be 67 or higher.

16. In 1935, when America set up its Social Security system, the official pension age was 65 — three years beyond the life span of the typical American

    Today, most Americans can expect to live to about 80 years of age. This fact has made many believe that the current retirement age of 65 is too low, and that it should be raised to reflect the much longer life spans people enjoy today.

17. Denmark is the only country that indexes retirement age to life expectancy

    In 2006, Denmark raised the pension age from 65 to 67 between 2019 and 2022. Thereafter, retirement ages will reflect the mean life expectancy of 60-year-olds, so that the average time people spend in retirement will be about 19 years. If life expectancy stays the same, the current retirement ages will as well. If they go up, so will retirement ages. The measure was created by the government to help better manage healthcare and pension costs over the next few decades.

18. The publication in 1955 of Senior Citizen magazine was the first widespread use of the euphemism

    Those 65 and older are often familiar with the term, but it didn’t come into common usage until the middle of last century. One of the first documented uses was in this publication, though it was met with a somewhat tepid response.

19. In the Middle Ages, European patriarchs were often forced into retirement

    No matter what country you read about, one thing is clear: older people often don’t want to retire. What holds true for today was also a major part of life back in the Middle Ages. Of course, forced retirement today is a bit different from back then, when being pushed into retirement could literally mean being pushed, perhaps down a flight of stairs. It was not uncommon for elder sons to commit patricide in order to speed up getting their inheritance. Think it was just a product of the Dark Ages? In the 18th century, similar cases weren’t unheard of and there was a spate of such killings in France. Not exactly the best part of the Age of Enlightenment.

20. In many places, the age that men can collect pension is 65 but only 60 for women

    While in most nations these ages are the same for men and women, in the UK, Brazil, and Italy, among others, there is a five-year difference. This difference, paired with longer female life spans, has caused a bit of a problem with pension payouts, which are often much higher for women than men over the course of their life. In the UK, government aimed to ease the budgetary problems caused by this discrepancy, and recently passed a resolution to amend the difference, but it won’t go into full effect until 2020.

21. Many nations around the world are creating programs to help older workers find and prepare for new jobs

    For some older adults, work after retirement is a personal desire. For others, it’s an economic necessity. Regardless of the reason, many retirees are seeking out work after retirement from their initial career path, and governments and private businesses are responding to their needs. In fast-aging Japan, an agency called the Silver Human Resource Center has been heralded by economists as a model of how to help older people back into the workforce. In the U.S., some major corporations are actively seeking out older adults, even letting them split time between locations based on the season.

22. In recent years America’s highest rate of entrepreneurial activity has occurred among people age 55 to 64, not among younger age groups

    Risk-taking might be a habit of the young, but older people in America are no stranger to it. Whether it’s because they have the experience or the finances at hand, more and more older adults are starting businesses. For many, entrepreneurship might be setting them up for a different, more flexible work situation in retirement. For others, starting a business is simply a lifelong dream they want to fulfill before they’re too old to handle the stresses it might bring.

23. In Ireland, 31% of retirees live in poverty

    Ireland boasts scenic landscapes and a fascinating history, but it is also home to one of the highest poverty levels in retired adults in the world. Among first-world nations, Ireland tops the charts when it comes to elderly adults in poverty, with over 31% of them living below the poverty line. Recent increases in the pensions of the country have helped the situation, but pundits in the EU charge that much more must still be done to help some of Ireland’s most vulnerable citizens.

24. For most older adults around the world, alternating work and leisure is seen as the ideal lifestyle later in life

    In contrast to the idea many of us hold about retirees, many want to keep working in later life and not only see it as desirable but as an essential part of staying happy and healthy. The 2007 Future of Retirement Study actually found that around the world, more older adults were providing support to relatives than were receiving it, showing that many long-held beliefs about retired adults may be untrue in the modern world.

25. Worldwide, the median age has risen considerably over the past 50 years

    Low birth rates and longer life expectancies have made for many older adults worldwide. These changes could also mean a major transformation in what retirement means to people around the globe, from how they spend it to what age is normal to retire.

Taken From Online MBA