The progressive aging of the population, the change in the nature of work and the effects of the recession on the public finances of the main EU countries exert considerable pressure on the financial sustainability of the social security systems.
According to data from the World Bank, from the first half of the 60s to today, the global fertility rate has dropped from an average of 5 to 2,5 children per woman and in almost all EU countries since the following the baby boom phenomenon, there has been an increase from an average of 2,6 to 1,5 children in 2015.
European aging is also due to an increase in life expectancy: from 1975 to 2015, life expectancy lengthened by ten years for men reaching 78 years of age and by eight years for women who reached 83 years old. The longest-lived in Europe are the Spaniards with a life expectancy of about 83 years, followed by the Italians and the French.
According to the OECD, from 1975 to 2015, life expectancy in retirement also increased by about 4 years in the EU, reaching 16,4 years for men and 20 years for women. Spain, France and Italy exceed the European average with 22-23 years for female workers and around 18 for male workers. The aging of the population is confirmed by a significant increase in the old age dependency rate: if in 1975 there were 65 people of working age for every over 5, in 2050 there will be just under two people of working age for every elderly person (forecasts OECD).
Since the 90s, demographic and macroeconomic changes have led policy makers in EU countries to reform the social security system by adopting both new pension schemes and measures aimed at extending the retirement age, increasing the minimum contribution years, restriction of early retirement requirements, to flexibility incentives aimed at prolonging working life before leaving the labor market. In the EU, on average, the effective exit age from the labor market in 15 years increased by about 2,8 years, going from 60,3 in 2001 to 63,1 in 2016. If we compare the effective retirement age with the statutory retirement age in 2016, Italy records the highest gap: 4,4 years for men and 4,2 for women.
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