Working More Years In Spain Has to Start from a Young Age: Lessons from the Labour Market Exit of People Aged from 50 to 65 in the Last Decade

Abstract

Since 2013, retirement age in Spain has been rising slowly from 65 to an expected 67 in 2027 and, with it, the minimum number of years of National Insurance contributions from 35 to 38. This policy is justified by sustainability of the social security system since the number of older people is increasing faster than the number of contributors. However, the policy has been criticised for not taking into account the diversity of working lives. The labour market and social construction of work differ with occupations and with gender, thus creating pluralities of working lives. Hence, the ways of leaving the labour market should take this diversity into account. Since the present wholesale policy of equally postponing retirement age for everyone overlooks the actual state of retirements, the aim of this study is to ascertain who has retired earlier or later in the last decade, the causes of exits from the labour market, and the repercussions on the number of years of National Insurance contributions. Premature exits from the labour market of people aged between 50 and 65 during the decade from 2010 to 2020 are analysed using data from the Continuous Sample of Working Lives (CSWL) taken from Spanish Social Security records. These are people who were born between 1945 and 1954. The results show that women work later than men, that people in Routine occupations tend to leave the labour market early, and that the number of years worked between the ages of 50 and 59 are a good predictor of prolongation of working life after the age of 60, although there are differences between the sexes.