How to make extending working lives in ageing welfare states socially sustainable

Extending working lives has been one of the main objectives of recent pension reforms. The rationale behind this approach is to ensure the financial sustainability of public pension systems in the face of ageing populations in European welfare states. However, the social sustainability of extending working lives has received less attention. In this chapter, we first discuss dimensions of social sustainability related to the policy objective and its outcomes at the levels of individuals and families, workplaces, pension systems and the welfare state. We then review the empirical evidence on the current state and issues related to the social sustainability of working longer. Overall, older workers on average exit labour markets later today than two decades ago in most European countries, but educational and gender differences in late-life employment persist. Socioeconomic inequalities in employment, income and well-being in later life are a key concern for the social sustainability of longer working lives. Investments in education, preventive healthcare and active labour market policies throughout the life course as well as providing care services and developing pro-old workplace practices can support achieving the goal of extending working lives in a socially sustainable manner.