EMPLOYMENT: OECD WARNS OF DIRE ECONOMIC CONSEQUENCES OF EARLY RETIREMENT.

The world's richest countries could face lagging growth, huge social security bills and labour shortages unless they take action to keep older people working, according to a report released on April 23 by the Paris-based Organisation for Economic Co-operation and Development (OECD). Following a series of evaluations, the OECD is to produce 20 country reports proposing comprehensive measures for governments, trade unions and employers to reverse the long-term trend towards early retirement. "Although older workers, with their wealth of experience, can offer tremendous value to business and society, they are often discouraged from working or developing their skills after the age of 50", says an OECD report on the findings.

The measures recommended in the country reports include reforming pension and social benefits and improving opportunities to learn new skills and remain active longer. Belgium, for example, encouraged early retirement for 20 years, but now needs to reverse the trend, as just 41% of Belgians between the ages of 50 and 64 were working in 2001. The OECD suggests that the Belgian Government should announce its intention to stop subsidising early...