The European population is living longer, with a declining natural population since 2014, offset only by positive net migration. The proportion of older people, especially those over 50, is increasing. Demographic ageing, where the working-age population shrinks while the number of older individuals grows, is expected to continue as the baby-boom generation retires. Although the older population is generally healthier than in the past, there are significant variations across EU Member States, presenting challenges for policymakers regarding employment, working conditions, living standards and welfare sustainability. Concerns include the viability of pension systems and labour supply.

Most EU countries have raised statutory retirement ages and limited early pension access. However, many workers do not remain employed until the retirement age due to various factors including labour market structures, work cultures, and pension system incentives. Policymakers must address the implications of demographic change on employment and welfare states, considering older workers’ working conditions and labour market participation.

Prolonging employment requires new approaches to working conditions and career paths that support physical and mental health, skills, motivation, and productivity. Eurofound defines sustainable work as conditions that allow individuals to remain in employment throughout their extended working lives, and involves balancing individual, social, and economic goals. Identifying factors supporting sustainable work has been a key focus for Eurofound since 2013.