by Gabriel H. Sahlgren
Institute of Economic Affairs
January 29, 2014
The employment rate among UK men aged 55-59 decreased from over 90 per cent to less than 70 per cent between 1968 and the end of the 1990s. The figures for men aged 60-64 and men aged 65-69 slumped from around 80 per cent to 50 per cent and 30 per cent to about 15 per cent respectively. Well-functioning retirement-income systems are desirable to enable people to retire from work. However, it is undesirable to have state welfare systems that encourage early retirement and impose the costs on others. It is also undesirable for labor market regulation to prevent those who would like to remain in employment from doing so. The benefits of increasing workforce participation rates flow both to the individual—in terms of improved health and increased incomes—and to society as a whole as greater employment at older ages will reduce the costs of aging populations.

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