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Early and phased retirement in European companies

In order to comply with the resolutions of the European Council of 2001, the aims of which include increasing the employment rate among people aged 55–64 years and the average retirement age, EU countries are currently discussing strategies designed to meet these objectives. As the European Commission’s report, Employment in Europe 2006, shows, while nearly all Member States increased employment rates for older workers between 2000 and 2005, there remains a significant shortfall in relation to the 50% target at EU level. Since the timing and the nature of the transition into retirement are influenced by the legal framework within the different countries, early and phased retirement schemes play an important role in this context.

In 2004, the European Foundation for the Improvement of Living and Working Conditions launched the Establishment Survey on Working Time and Work–Life Balance (ESWT), a large-scale representative sample survey conducted at establishment level in 21 European countries, comprised of older and new Member States. The survey focused on a variety of working time arrangements, including flexible working hours, overtime, part-time work, work at unusual hours (for example, shift, night or weekend work), parental leave and other forms of long-term leave, as well as early or phased retirement. This report explores the latter topic of early and phased retirement (progressive or partial retirement) from the perspective of the central actors at establishment level, namely personnel managers and employee representatives (see Text Box 1 for more information about the ESWT).

Various aspects regarding early and phased retirement were examined within the framework of the ESWT. Apart from the issue of whether the use of such schemes is possible in the companies examined, information was also gathered with regard to the proportion of employees eligible for early or phased retirement and the reasons for making use of such schemes. Relevant questions regarding these two options were directed at both management and employee representatives. This report provides an overview of the distribution of and extent to which both schemes are used. In this context, the institutional frameworks of early and phased retirement are not only examined, but also the influencing factors specific to the establishment. Finally, the deployment of both schemes is examined from a management and employee representative perspective.