Saturday, February 28, 2009

Denmark: Survey Finds Workers in Health and Social Services Industry Delaying Retirement

According to a survey conducted by Pensionskassernes Administration (PKA), fewer PKA members in the health and social services industry are retiring than earlier. The number of active members over the age of 60 has increased from 13,500 to 18,000 between 2005 and 2008, while the proportion of health workers retiring at 60 fell to 13.2% in 2008.
"It surprises us that things are going that way--fewer retire when several have been given the option. It is of course positive for society, because especially in the health sector are labor shortages. But it is also good for the individual who will receive a higher pension by deferring the retirement age a few years, "says member manager of PKA Britt Brandum. [Google Translate from Danish]
According to Brandum, the vast majority of PKA members, around 90%, are women who have a life expectancy of around 85 years. Thus, when those whose choose to retire at 60 face a long retirement period of 25 years.

According to Peder J. Pedersen, professor of Velfærdsforskning at the Department of Economics, University of Aarhus, and a member of the Employment Commission, the figures are interesting and reflect a stated desire of employers for older workers to work a few extra years because of labor shortages. While if this progress continues, the shortage of manpower in the health sector will be easier, but to close the gap completely, it must be something more dramatic.

Sources: Pensionskassernes Administration Nyt fra PKA (February 26, 2009); Investment & Pensions Europe "Fewer Danish health workers are retiring early" (February 27, 2009)

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