This article takes a look at the 20 countries with the lowest retirement ages in the world. If you wish to skip our detailed analysis on navigating aging populations, you may go to 5 Countries with The Lowest Retirement Ages in The World.
On Navigating Aging Populations
According to the World Health Organization, the population of individuals aged 65 or older will outnumber those under the age of 15 by 2024. In the case of the United States of America, every Baby Boomer will have turned 65 or older by 2030. Most of these Boomers will be using some sort of Medicare for health coverage, and 40 million are yet to sign up for it. Yet many others will also be receiving social security benefits.
In line with several other nations grappling with aging populations, the US hasn’t been all prepared to cater to an aging demographic. As of today, a typical American allocates approximately 18 years to retirement, with an average lifespan expectancy of 76 years,. A health trends report from CVS Health Corporation (NYSE:CVS) underscores the urgency of this matter, projecting that by 2060, the population over the age of 85 will nearly triple. This demographic shift places a growing demand on healthcare services, as evidenced by the report indicating that one in four doctor visits involves individuals aged 65 and above. Furthermore, hospital stays for this age group are twice as likely, highlighting the escalating healthcare needs of the aging population.
Many organizations have been taking initiatives to cater to this burgeoning demographic. For instance, Minute Clinic, a walk-in clinic by CVS Health, has been transforming itself to offer age-friendly care to patients.
“We have been preparing for this moment, and with the touch points we have, are uniquely positioned to support older adults.”
-Sree Chaguturu, MD, Executive Vice President and Chief Medical Officer for CVS Health Corporation (NYSE:CVS).
Not only has the organization been transforming itself within four walls, but has also been working on other factors that can worsen health issues in individuals. CVS Health Corporation (NYSE:CVS) reports having invested more than $1.2 billion in affordable housing for Americans in order to provide stability in their lives and reduce financial strain that can potentially impact their health.
Similarly, Johnson & Johnson (NYSE:JNJ) has also been actively involved in strengthening healthcare systems to help advance global equity and deal with aging populations. The organization has been helping Japan, one of the oldest countries in the world, deal with its disease burden. Reportedly, around 63% of seniors aged 65 and above grapple with multi-morbidity, a condition that significantly affects both functional ability and quality of life, and, unfortunately, leads to increased mortality rates.
Johnson & Johnson (NYSE:JNJ), in its efforts to improve healthy life expectancy in the region, has initiated the Japan Smart Healthy Aging Quick Fire Challenge held in 2022. This challenge invited innovators from across the globe to provide potential solutions that can help increase healthy life expectancy in the country. The winner of the Johnson & Johnson (NYSE:JNJ), announced in July 2023, is Qure.ai, a global leader in AI-based radiology solutions. Qure.ai developed an AI-based head CT interpretation software, qER, that not only detects abnormalities in non-contrast head CT scans but also identifies Large Vessel Occlusion (LVO) on NCCT.
Despite efforts made by health organizations, it must be noted that the global strain caused by the aging population extends beyond healthcare alone. These aging populations have been straining social safety nets as well, such as the social security system. By 2033, social security funds are expected to be depleted in the USA. At this point, benefits would be reduced by 25%, a direct impact of the increasing burden of old-aged populations. In 1960, there were 5.1 workers per beneficiary in the US. Today, the ratio has dropped to 2.8 workers only.
Consequently, many countries including the United States, have been reassessing and revising their retirement age policies. With increased life expectancy and changing workforce dynamics, the traditional retirement age may no longer align with the economic and demographic realities of the 21st century. Countries such as France, despite massive public protest, have revised their retirement ages to reduce the strain on their pension systems. The Social Security retirement age in the US is also moving to 67, and many lawmakers are adamant about pushing it even forward.
Yet other countries such as Saudi Arabia, Vietnam, and Sri Lanka are considering or are already in the process of increasing their retirement ages. Moreover, countries such as Greece, already have one of the oldest retirement ages in the world (67 years).
Methodology
To compile the list of 20 countries with the lowest retirement ages in the world, we have used several sources such as OECD and Euro News, among others. After compiling the list of places, we ranked them on their retirement ages. Places have been ranked in descending order from the highest retirement age to the lowest.
Here are the 20 countries with the lowest retirement ages in the world:
20. France
Retirement Age: 64 years
France has one of the lowest retirement ages in Europe. Despite massive protests, the country has now increased its retirement age from 62 to 64 years. The country’s president, Macron, states that the reforms were essential to prevent the pension system of the country from collapsing. As of 2023, 26% of the population comprises the elderly, amounting to 13.94 million people. It is further estimated that the country will face a 90% increase in people aged 85 and older between 2030 and 2050.
19. Russia
Retirement Age: 62 years (men), 57 years (women)
According to a report by the World Bank, Russia’s population is set to age significantly in the next few decades. The country is facing a demographic crisis. Birth rates have fallen back to 1945 levels. Life expectancy for Russian men has reduced to 62.4 years in 2021 from 68.8 in 2019, and it is expected that the population may drop to 130 million by 2030. The working-age population is expected to decline by 14% in the next 35 years too.
18. Turkmenistan
Retirement Age: 62 years (men), 57 years (women)
According to the World Bank, Turkmenistan has an age dependency ratio of 57%. This is a high ratio, representing a higher burden on the working-age population to support older people. One change that the country has introduced is to reduce the retirement age of a working mother with many children by 2 years, and the required period of work by 5 years.
17. Egypt
Retirement Age: 60 years
Egypt has one of the youngest retirement ages in the world, set at 60 years. According to the United Nations Population Fund, the country is expected to go through a demographic transition between 2020 and 2050. Individuals aged 60 or older will increase from 8.4 million people to 22 million people, as reported by Egypt Today.
16. China
Retirement Age: 60 years
China has one of the lowest retirement ages in the world. The country is yet to announce a reform to its retirement system to cope with its rapidly aging population. At the end of 2022, the country had more than 280 million people who were aged 60 and above. Starting in 2023, an estimated 228 million people will be retiring over the decade, reports Nikkei Asia.
15. Vietnam
Retirement Age: 60 years (men) and 55 years (women)
Vietnam, one of the best places to retire around the world, has one of the lowest retirement ages in the world. The nation hosts a swiftly aging demographic, where individuals aged 60 and above constitute over 12% of the total population. By 2050, projections suggest that the country will transition into an aged society, accommodating 25% of seniors. To decrease the burden on society, Vietnam has begun increasing the retirement age with effect from January 1st, 2021. The retirement age is set to annually increase by three months for men until it reaches 62 in 2028 and by four months for women until it reaches 60 in 2035.
14. Venezuela
Retirement Age: 60 years (men), 55 years (women)
The retirement age for individuals in Venezuela is 60 for men, and 55 for women, with at least 750 weeks of contribution. AP News reports that the country has more than 5 million pensioners, and the pension paid to them is insufficient to buy even basic goods. Hyperinflation, standing at 186.4%, has been eating their pension for years.
13. Uzbekistan
Retirement Age: 60 years (men), 55 years (women)
Uzbekistan is the only Central Asian country that hasn’t increased its retirement age after the collapse of the USSR. Currently, this age stands at 60 for men and 55 for women. As of 2023, 9% of the population comprises seniors aged 60 or older. However, the World Bank has recommended the country to adopt a slow increase in its retirement age. This step will help reduce the pressure of demographic changes.
12. Turkey
Retirement Age: 60 years (men), 58 years (women)
Turkey has one of the youngest retirement ages in the world. As of 2023, the country is home to more than 8 million seniors, accounting for 9.9% of the total population. According to the OECD, the nation anticipates a gradual rise in the retirement age, reaching 65 for men by 2046 and for women by 2048.
11. Sri Lanka
Retirement Age: 60 years
Previously set at 55 years, the retirement age in Sri Lanka has been revised to 60 years and has been in effect since January 2023. World Bank states that the country has one of the highest proportions of older adults in South Asia at 12.3%. It is further predicted that by 2050, the country will face an unprecedented demographic transition and that too, at a lower level of per capita income than other (aging) economies.
10. Saudi Arabia
Retirement Age: 60 years (men), 55 years women
Saudi Arabia is another one of the countries with the lowest retirement age in the world. However, it is proposed that the retirement age for both men and women should be raised to 62 years by 2024. Arab News reports that 63% of the population in the country is under 30. However, this demographic will shift in some decades and the country will have higher populations of seniors.
9. Philippines
Retirement Age: 60 years
Under the Philippines law, the retirement age for individuals in the country is 60 years. As of 2022, the age dependency ratio stands at 55.7%, which means a large number of elders are dependent on the working population. It is further estimated that by 2025, the elderly will make up 7.7% of the total population.
8. Pakistan
Retirement Age: 60 years (men), 55 years (women)
Pakistan is one of the most populous countries in the world. As of 2019, 7% of the population was aged 65 or older, which makes about 15 million people. According to the OECD, the normal pension age for earnings-related private sector pension is 60 for men and 55 for women.
7. Oman
Retirement Age: 60 years (men), 55 years (women)
Several changes are being made in Oman regarding retirement. For instance, normal retirement age is set to increase by one year every seven years. This will remain in effect till the retirement age reaches 65 for men and 60 for women. As of 2020, the number of seniors in Oman made up 2.8% of the total population.
6. Malaysia
Retirement Age: 60 years
As per the Minimum Retirement Age Act 2012, the minimum retirement age in Malaysia is 60 years. According to the law, premature retirement is prohibited, and no employee can retire earlier than 60. The country is also experiencing aging like many other countries. As of 2023, 7.4% of the population comprises seniors, encompassing 2.5 million people.
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Disclosure: none. 20 Countries With The Lowest Retirement Ages in The World originally published on Insider Monkey.