The working-age population in the EU is projected to shrink in the coming years. Extending retirement ages could significantly help companies adapt to demographic changes. By including the 65-69 age group in the labor force, around 75% of the labor shortage could be addressed, reducing the overall decline in the EU 27 working-age population by approximately 10 percentage points, from -13.4% to -3.3%. On average, the EU 27 is expected to face an annual decrease of -0.8% in this population until 2040. Additionally, positive net migration could boost the working-age population in many EU countries, except for most Eastern European nations, which are typically migration-sending countries.
Learn more here: https://www.allianz.com/en/economic_research/insights/publications/specials_fmo/240919-demography.html
