The indicator of expected years after labour market exit illustrates the average years of remaining life expectancy from the age a person leaves the labour market. The indicator illustrates a link between the labour market exit and financial pressure on pension systems, in the context of an ageing population.
On average across OECD countries, women can expect to live over four years more after labour market exit than men (22.8 years for women compared to 18.4 years for men) (Figure 5.13). In Costa Rica, Colombia, Greece, Hungary and Poland, the gender gap was at least six years. This gap is related to a higher life expectancy and a lower labour market exit age among women. However, longer periods after labour market exit expose women to old-age poverty.
The expected years after labour market exit in non-OECD economies is generally lower than in the OECD. For men, it varies from 9 years in Indonesia to above 15 years in Brazil, China and Croatia. For women it ranges from 11 years in Indonesia to around 24 years in China and Croatia – the latter two is above the OECD average.
The average expected number of years after labour market exit across OECD countries has increased over time. In 1980, men in OECD countries spent, on average, 14 years in retirement and by 2022, this average had increased to 18 years (Figure 5.14, Panel A). The increase in the expected years after labour market exit was similar for women, increasing from 18 years on average in 1980 to almost 23 years in 2022 (Figure 5.14, Panel B).
