According to the OECD, on average, in OECD countries there were 21 people aged 65 or over for every 100 people aged 20 to 64 in 1994. By 2024, that number had risen to 33. By 2054, it is expected to reach 55. This is not simply a demographic change. It will affect who works, how long people stay in employment and how employers manage their workforce.

Longer lives are already affecting retirement policies. Under current legislation, the normal retirement age is expected to increase in half of OECD countries. For a man entering the labour market at age 22 in 2024, the average normal retirement age across the OECD will be 66.4, compared with 64.7 for someone retiring today. 

In some countries, the change will be much greater. If current legislation is fully applied, the retirement age is expected to reach 74 in Denmark and 71 in Estonia. At the other end of the scale, the future retirement age for men remains 62 in Colombia, Luxembourg and Slovenia. 

For employers, this means that having people working into their late 60s, and in some countries beyond, will become increasingly usual. 

Population ageing also means that a smaller share of the population may be available to work, while spending on pensions and healthcare increases. The OECD projects that the working-age population will fall by around 13% on average by 2064. The decline is expected to be much greater in some countries. One response will be to make better use of the workers who are already available, including older workers. There is still a significant employment gap. In 2024, 64.6% of people aged 55 to 64 were in employment across the OECD, compared with 80.1% of those aged 25 to 54. In Luxembourg, Slovenia, Poland, Austria and Türkiye, the gap between the two age groups is more than 25 percentage points. This leaves considerable room for employers and governments to help more people remain in work later in life. 

Older workers can bring significant value to businesses through their experience, knowledge and understanding of the organisation. However, retaining them remains a challenge. Across the OECD, only slightly more than half of workers aged 55 to 59 are still with the same employer five years later. The figure is above 70% in Norway, but only around 30% in South Korea and Luxembourg. Losing a job later in life can also have more serious consequences. Older workers who become unemployed are more likely than younger workers to remain unemployed for longer or leave the labour market altogether. 

For employers, this raises an important question: what can be done to keep experienced employees in work for longer, rather than losing their knowledge and skills before they reach retirement? 

Working longer will also require people to continue learning throughout their careers. However, older workers are still less likely to receive training. According to Eurostat data, across the EU, around 35% of workers aged 55 to 64 participated in job-related formal or non-formal training during the previous 12 months, compared with 48% of workers aged 35 to 54. There are also large differences between countries. More than 60% of older workers participate in training in Sweden, while the figure is below 10% in Greece and Türkiye. 

This matters for employers. If people are expected to remain in work for longer, their skills also need to remain relevant for longer. This is particularly important as technology, AI and the way work is organised continue to change. Failing to invest in older workers can eventually mean losing both their experience and their productivity. 

Employers do not need to wait for demographic change to become a problem. They can start by looking at the age profile of their workforce and identifying where important skills or experience could be lost through retirement.  

Training should also be available throughout a person’s career rather than concentrated on younger employees. The OECD has repeatedly highlighted lifelong learning as an important part of helping people remain productive and employable at older ages. 

Employers can also review whether jobs can be adapted as people age. Flexible working arrangements, changes to working hours, better workplace health measures and opportunities to move into different roles can help people remain in employment for longer. 

Finally, age should not become an automatic assumption about someone’s ability, ambition or willingness to learn. Recruitment, promotion and training decisions should be based on skills and performance. As working lives become longer, employers that can attract, develop and retain people across different age groups will be better placed to deal with labour shortages and preserve valuable experience.