Population Aging and the Retirement Age

Abstract

Numerous jurisdictions have recently raised the age of retirement or plan to do so. Pressure to extend people's working lives is due to population aging, which makes it harder to fund retirement through existing methods. Raising the retirement age can improve the ‘dependency ratio’ by increasing the fraction of the population that works (and pays taxes) relative to the fraction retired. This article gives sustained attention to connecting the case for retirement with one view about wellbeing, according to which old age is subject to distinctive goods. The importance of being able to access these goods in old age favours an eventual exit from labour market participation that retirement provisions enable. This view is stronger than one that treats retirement as merely a safety net to enable people to stop work only when advanced aging makes it unreasonably burdensome. At the same time, the view likely does not justify status quo retirement ages, meaning that some increase to the retirement age might be defensible. The article also seeks to illuminate ways in which different aspects of population aging – in particular the distinction between dependency ratios and inequalities in longevity – bear differently on the wider debate about justice and retirement.