Exploring the Determinants of Early Retirement in Spain: Spain
Selected Issues Papers, June 13, 2025
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- Exploring the Determinants of Early Retirement in Spain: Spain
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Bibliographic details
- Authors: Carlo Pizzinelli, Rodrigo Barrela
- Published: June 13, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229014953.018
Overview and key findings
- Increased longevity and population aging pose growing fiscal challenges for Spain.
- Encouraging greater labor force participation among older workers can mitigate these fiscal challenges.
- 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.
- Despite these reforms, a considerable proportion of workers still retire early or exit the labor force several years before reaching retirement age.
Determinants and constraints to labor force participation (workers aged 55 and above)
- Deteriorating health conditions.
- Need for flexibility in work arrangements.
- Household-related time commitments, such as caregiving for family members.
- Challenges in maintaining in-demand skills.
- Financial (dis)incentives embedded in unemployment support programs.
Policy implications and areas for action
- Policy action across a broader range of areas is needed to foster further employment growth among older workers.
- Address health-related barriers to continued employment.
- Promote flexible work arrangements suited to older workers.
- Support caregivers to reduce household time-commitment constraints on labor supply.
- Enhance lifelong training and skills maintenance to keep older workers in demand.
- Review unemployment support program incentives that may encourage early exit from the labor force.
Content in this bundle
- Sipea2025078