Selected Issues Papers

Exploring the Determinants of Early Retirement in Spain: Spain

By Carlo Pizzinelli, Rodrigo Barrela

June 13, 2025

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Format: Chicago

Carlo Pizzinelli, and Rodrigo Barrela. "Exploring the Determinants of Early Retirement in Spain: Spain", Selected Issues Papers 2025, 078 (2025), accessed July 20, 2025, https://doi.org/10.5089/9798229014953.018

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Summary

Increased longevity and population aging pose growing fiscal challenges for Spain, which can be mitigated by encouraging greater labor force participation among older workers. Over the past decade, increases in both the minimum and standard pensionable age have led to longer average careers, resulting in significant aggregate employment rate gains. However, a considerable proportion of workers still retire early or exit the labor force several years before reaching retirement age. Therefore, policy action across a broader range of areas is needed to foster further employment growth, by addressing critical issues and constraints to labor force participation among workers aged 55 and above. These include deteriorating health conditions, the need for flexibility in work arrangements, other household-related time commitments—such as caregiving for family members, maintaining in-demand skills, and the financial (dis)incentives embedded in unemployment support programs.

Subject: Aging, Employment, Health, Labor, Labor markets, Population and demographics, Retirement

Keywords: Aging, Determinants of early retirement, Employment, Employment growth, Health condition, Labor Force Participation, Labor markets, Older worker, Older Workers, Retirement, Work arrangement

Publication Details

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