The labour market and output effects of ageing are exacerbated by policies that
encourage individuals to withdraw from employment prematurely.
These policies include
early retirement schemes and features of pensions systems that penalise working. The
labour market participation of individuals older than 65 years remains comparatively low
Enabling individuals to adjust their working hours to their physical
and mental ability and their willingness to work is essential for work-life balance and
subjective well-being of the elderly (Reday-Mulvey, 2005; Barnay, 2014; Nikolova and
Graham, 2014). This includes options to combine an old-age pension with paid
employment. Steps to remove barriers to employment at higher age can also help to reduce
old-age poverty risks.