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Marius LüskeSocial Policy DivisionOCDE / ELS
OECD REPORT
PREVENTING AGEING UNEQUALLY
OECD report Preventing Ageing Unequally10th meeting of the Working Group on Ageing
UNECE23 November 2017
INTRODUCTION
UNEQUAL AGEING IS A MAJOR SOCIETAL CHALLENGE
OECD REPORT PREVENTING AGEING UNEQUALLY
The OECD report PREVENTING AGEING UNEQUALLY
It is part of the OECD’s inclusive growth agenda It reviews ageing and inequality trends and
assesses how they have been interacting within and across generations
It shows how disadvantages become entrenched. Inequalities start early in life and compound along the life course
It puts forward a policy agenda to prevent, mitigate and cope with unequal ageing
3
Population ageing will be fast in all OECD countries
4
Number of people aged 65+ per 100 people of working-age (20-64)
Source: OECD (2017) - Preventing Ageing Unequally based on United Nations World Population Prospects: The 2017 Revision data.
0102030405060708090
2015 1980 2050 (↘)Selected countries
5
Income inequality among older people varies across countries
0.00
0.10
0.20
0.30
0.40
0.50
Gini coefficient among people over 65 years
Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.18, based on OECD estimates
Selected countries
Ageing is not an equal process. Many different types of inequalities exist and compound over the life course
6
Life expectancy gaps between high and low educated groups at ages 25 and 65, males, around 2011, in years
0
2
4
6
8
10
12
14
16
Longevity gap at 25 years (↗) Longevity gap at 65 yearsSelected countries
Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.2, based on OECD estimates
INEQUALITIES COMPOUND OVER THE LIFE COURSE ACROSS MANY
DIMENSIONS
Health and labour market outcomes are linked
8
Share of people reporting bad health by age, gender, and education
0
10
20
30
40
50
60
20 25 30 35 40 45 50 55 60
%
Age
Panel A. Entire population, by gender
0
10
20
30
40
50
60
20 25 30 35 40 45 50 55 60 65
%
Age
Panel B. Employed population, by gender
0
10
20
30
40
50
60
20 25 30 35 40 45 50 55 60 65
%
Age
Panel C. Entire population, by education level
Lower educated Medium educated Higher educated
0
10
20
30
40
50
60
20 25 30 35 40 45 50 55 60 65
%
Age
Panel D. Employed population, by education
Men Women
Source: OECD (2017) - Preventing Ageing Unequally, Figure 2.1, based on microdata from 24 OECD countries
People in bad health work less and earn less when they work at all ages
9Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.11., based on microdata from 24 OECD countries
ANALYSIS ACROSS COHORTS / GENERATIONS
Inequality at a given age is higher today than in the past in most OECD countries
11
Income Gini index by cohort and age group
Source: OECD (2017) - Preventing Ageing Unequally, Figure 3.18, based on Luxembourg Income Study data.
OECD average by birth decade
0.22
0.24
0.26
0.28
0.30
0.32
0.22
0.24
0.26
0.28
0.3
0.32
20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79
Gini
Age
1920 1930 1950 1960 1970 19801940
Income inequality across generations
Income Gini by cohort and age groups, selected OECD countries
12
0.15
0.20
0.25
0.30
0.35
0.40
20 25 30 35 40 45 50 55 60 65 70 75
Panel A. United States
1920 1940 1960 1980
0.15
0.20
0.25
0.30
0.35
0.40
20 25 30 35 40 45 50 55 60 65 70 75
Panel B. Slovak Republic
0.15
0.20
0.25
0.30
0.35
0.40
20 25 30 35 40 45 50 55 60 65 70 75
Panel C. Spain
0.15
0.20
0.25
0.30
0.35
0.40
20 25 30 35 40 45 50 55 60 65 70 75
Panel D. Ireland
Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.6., based on Luxembourg Income Study data.
OVERALL OLDER PEOPLE FARE BETTER TODAY THAN IN THE
PAST, BUT FUTURE PROSPECTS ARE LESS FAVOURABLE
Real income growth was faster for older age groups
14
Change in relative income of 60-64 vs 30-34 year olds; mid-1980s to mid-2010s
Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.8, based on OECD Income Distribution Database.
-20
-10
0
10
20
30
40
50%Selected countries
15
Poverty risks have shifted from older people to the young in most countries
Poverty rates among different age groups, 2014 or latest available, in %
Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.9.Note: The poverty line is defined at 50% of the median equivalised household income. Study data.
Selected countries
0
10
20
30
40
50
60
% 66-75 (↗) 18-25 76+
Inequalities in retirement: making the work-to-retirement transition
Changes in life expectancy at age 65 and in the average age of labourmarket exit since 1975, in years
Source: OECD calculations. Labour market exit age data are based on the results of national labour force surveys, the European Union Labour Force Survey and, for earlier years in some countries, national censuses. Life expectancy data stem from OECD Health Statistics and are based on Eurostat data and national sources. 16
Income improvements across generations are slowing down
Age-cohort pattern of real disposable income, OECD average, 2010 USD PPP
17
Source: OECD (2017) - Preventing Ageing Unequally, Figure 1.15, based on Luxembourg Income Study data.
Old-age poverty and inequality are major challenges in many countries
Population ageing will magnify these challenges While currently older people fare relatively well in a number
of countries, the situation is likely to become less favourable
Younger generations who have entered the labour market might not enjoy the improved situation for current old people
This will have long-lasting effects, impacting on their living condition in old age
There is a serious risk that ageing will be tough for the poorly educated individuals born after the mid-1960s 18
Summary
POLICIES TO ADDRESS UNEQUAL AGEING
OECD Recommendations on Policies to Address Unequal Ageing
Need for life-course policy packages based on 3 pillars
POLICIES TO ADDRESS UNEQUAL AGEING
PREVENT INEQUALITIES BEFORE THEY BUILD UP
AND COMPOUND
MITIGATE ENTRENCHED INEQUALITIES
COPE WITH INEQUALITY AT OLDER AGES
20Source: OECD (2017) - Preventing Ageing Unequally
1. Prevent inequalities before they build up and compound
21
Place early-life interventions at the top of the policy agenda
Promote a good start in working; ensure a smooth school-
to-work transition
Break the links between socio-economic disadvantages
and health
2. Mitigate existing inequalities
22
Promote healthy ageing by developing a multi-sectoral
active ageing strategy and through equal access to health
care
Limit the impact of job loss and combat long-term
unemployment
Provide equal opportunities for workers to upgrade their
skills
Remove barriers to retain and hire older workers
3. Cope with inequality at older ages
23
Target adequate levels of retirement income through a
combination of safety nets, mandatory pensions, private
schemes and pension credits
Place more emphasis on redistribution objectives of
pensions to account for inequality in life expectancy
Reduce inequalities in long-term care by making home care
affordable for all
http://oe.cd/pau2017 - Twitter: @OECD_Social
24
OECD REPORT PREVENTING AGEING UNEQUALLY
In It Together: Why less Inequality Benefits All
Divided We Stand: Why Inequality Keeps Rising
25
The Pursuit of Gender Equality: An Uphill Battle
OECD Centre for Opportunity and Equality (COPE)
www.oecd.org/els
Twitter: @OECD_Social
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