Retirement Age on the Rise: More info

In 2020, I highlighted a growing trend: businesses, financial institutions, and fiscal realities were pressuring governments worldwide to raise the official retirement age or the age to collect state pensions. Five years later, that pressure has not only continued, it has accelerated, becoming a central economic policy for nations grappling with aging populations.

The fundamental challenge remains we are living longer, healthier lives. While this is a triumph of modern medicine, it strains pension systems designed for shorter life expectancies. Providing for a growing number of seniors in retirement is a fiscal ticking time bomb for many countries. The primary solution governments are increasingly adopting is to formally raise the retirement age or create strong incentives to delay claiming benefits.

This trend is no longer a speculative future but a present-day reality, as recent developments confirm:

Canada's Move to Adjust OAS
In 2022, the Canadian government began a gradual increase in the eligibility age for Old Age Security (OAS) benefits. While not raising the standard age of 65, the government is raising the age for automatic enrollment in the mandatory "GIS Top-Up" from 65 to 67 by 2029. This policy change, aimed at ensuring the long-term sustainability of the system, effectively encourages Canadians to work longer or rely on other income sources until they are eligible for the full suite of benefits. It represents a significant, albeit nuanced, step-in aligning Canada's system with the global trend of asking citizens to work longer.

New Zealand's Persistent Fiscal Warning
The debate we noted in New Zealand continues to simmer. The Treasury's sobering reports on the unsustainable cost of the pension system have only become more urgent. While raising the age from 65 remains a political hot potato that most parties avoid, the fiscal pressure is relentless. The core issue, as highlighted by media outlets like Stuff, remains unchanged: without higher taxes or a higher pension age, the nation faces extreme debt. The political difficulty of implementing such change continues to be the main obstacle.

Ireland: A Blueprint for the Political Battle
Ireland’s experience since 2020 has become a classic case study in this global shift. The public outcry over the planned increase to 67 did, as predicted, have significant political consequences. It contributed to the political upheaval in the 2020 election and forced a government re-think.

However, the underlying demographic and economic drivers did not disappear. After extensive debate and commissions, the Irish government has settled on a new, more gradual path. As of 2025, the plan is to implement a flexible pension age starting at 66, with the State Pension age gradually increasing to 67 in 2021 and 68 by 2028, while allowing people to work until 70 with a higher pension. This compromise shows that while the pace of change can be adjusted due to public pressure, the direction of change—toward a higher effective retirement age—is unwavering.

A Accelerated Global Wave
The past five years have seen a significant acceleration of this policy. Since our original post, numerous countries have either implemented or announced plans to raise their retirement ages:

• France: Despite massive protests, President Macron's government successfully raised the retirement age from 62 to 64.
• The United Kingdom: The planned increase to age 68 is under official review, but the policy direction remains firmly set on a higher age threshold.
• The Netherlands: The retirement age is now officially linked to life expectancy and is gradually increasing, reaching 67 and three months in 2025.
• Germany: The retirement age is progressively rising to 67, with the transition period concluding in 2031.

The trend is clear. What was once a topic of tense debate is rapidly becoming a new normal. The political battles, as seen in France and Ireland, are fierce, but they are increasingly rear-guard actions against a powerful tide of demographic and economic inevitability. The question for most developed nations is no longer if the retirement age will rise, but how quickly and how high it will go.