The Generation Gap

Statistics show that a quarter of the population of the European Union is retired. We are talking about around 120 million people, and their number is growing. There was a ratio of 4 to 1 between people of working age (15 to 64) and people over 65 in 2008

Eugen Cojocariu, 29.04.2012, 18:41

Statistics show that a quarter of the population of the European Union is retired. We are talking about around 120 million people, and their number is growing. There was a ratio of 4 to 1 between people of working age (15 to 64) and people over 65 in 2008. Under the circumstances, the European Union has started looking for solutions to sustain the pension system.





A report issued by the European Commission in 2010 estimated that the age expectancy of Europeans will be seven years higher by 2060, which would drastically increase the gap between the number of employees and that of pensioners. For this reason, the European Commission has recommended raising the retirement age, so that retirement may only be around one third of a person’s adult life, around 18 years.





In other words, retirement age is going to start pushing towards 70. This issue has sparked heated debates in the European Union, where the usual retirement age was around 60, and was even lower for women. Some countries have already taken measures to prolong working life. Germany has raised the retirement age from 65 to 67. In Romania, where the ratio of working people to retired people is 1.3 to 1, the retirement age has been set at 65 for men and 63 for women, a measure to be implemented gradually by 2030.



The European Union showed its concern with the issue by declaring 2012 European Year for Active Ageing and Solidarity between Generations. The initiative comes against the backdrop of great gaps between member states, as well as huge unbalances on the labour markets and the pension systems.



The European year of active ageing was launched early in March in Romania by the European Commission representative office in this country in partnership with the Ministry of Labour. In their view, active ageing means ageing well, with good integration into society, and part of that may be voluntarily returning to work. Polls reveal that one out of three Europeans would like to work past the retirement age, while in Romania this percentage is 27%. For them, the government has submitted to public debate an initiative announced by government adviser Andreea Paul Vass:





Andreea Paul Vass: “I propose that we create employment agencies for pensioners who wish to share their skills, knowledge, work and life experience with the younger generations. There are many people who would like to remain productive and use their spare time efficiently, but with flexible work hours and part-time employment.”





Active aging, the eradication of social exclusion and a balanced labour market are also the goals of the EUROPA 2020 Strategy aimed at reducing the gaps between EU members. Another objective is to boost the employment rate for the 20 to 64 age segment to 75% by 2020. But does such an objective hold real chances of success, given the current economic crisis? After Spain and Belgium, Italy has also reported 2 million unemployed citizens, 3% more as compared to the end of 2011. As reported by Elena Postelnicu, Radio Romania’s correspondent to Italy, 3 out of 10 Italian citizens aged under 24 are unemployed. Official data show that in November 2011, the unemployment rate in the Eurozone’s third largest economy was 8.8% and rising. Elena Postelnicu:





Elena Postelnicu: “Italy records the highest percentage of youth who are neither employed nor attending training courses in schools, universities or companies. The unemployment rate among people aged between 15 and 24 is 31.1%. There is low interest in education and employment in Italy. Young people graduate from vocational schools at the age of 23, and not 18, as is the case in Romania for example. Over 20% of Italy’s youth didn’t use a computer in 2011, and some 44% didn’t read a single book in the past year. What’s interesting is that 98,000 young Italians are willing to leave the country to find a job, but say they wouldn’t accept any kind of work and would have many requirements before signing a contract.”



The public debt crisis and austerity measures severely affect public sector jobs not only in Italy, but on the entire continent. There is no sign at the moment that unemployment will drop. The number of pensioners keeps growing, with statistics predicting that in 2060, some 28% of the European Union’s population will be aged 65 or over, as compared to the current 16%. The question remains: who will pay for pensions after 2030, when this problem is expected to become even more pressing?