The International Monetary Fund (IMF) has sparked global debate over the era of retirement.
Their argument is that ’70 is the new 50′ due to improved health and cognitive abilities in older people. In its report, “Rise of the Silver Economy,” the IMF emphasizes that in 2022 people aged 70 exhibit the same cognitive function as the average age of 53 in 2000, based on a survey of 1 million people from 41 countries. Memory, orientation and basic mathematics tests, along with physical assessments of grip strength and lung function, show that the average 70-year-old 25 years ago matches the fitness of a 56-year-old today.
The IMF’s push to raise retirement age comes from tensions over the sustainability of current pension schemes, as rising life expectancy and lower birth rates are changing economic models. These trends can hinder economic growth by increasing the number of non-workers in the dependency rate or population, reducing participation in the labour market.
Spain’s retirement age currently ranges from 65 to 67, depending on the amount of contributions from Social Security contributions, suggesting that the IMF will not only delay retirement, but also extend the pension calculation period beyond the current 29 years. This could incorporate a lower earning year and reduce pension payments.
The IMF proposal will be implemented in line with warnings from the Spanish Independent Authority (AIREF) that predicts pension expenditures will reach 5.6% of GDP in 2025. The “alternative effect” is expected to exceed 200 million euros, as new pensioners receive higher profits than existing systems to die. In March 2025, Spain’s social security system spent 1349.2 billion euros on pensions, up 6.3% from the previous year, stretching finances and leading a future where retirement could be delayed and lawful.
While promoting longer working lives, the IMF is encouraging people to tilt their hats to Spanish recent initiatives and delay their retirement. Alternatively, the IMF suggests that employment rates need to be strengthened through modernized job brokerage services, public-private partnerships, and policies that allow unemployed people to work temporarily while receiving benefits. The IMF argues that the measure can improve labor supply and stability in the national economy as a form of addressing the challenges of the aging “silver economy.”
