Europe's demographic time bomb has been ticking for decades, with societies of European Union countries growing older and people living longer. More than a fifth of the European Union's population is now aged 65 or older. That figure is expected to reach a third by 2050. The World Health Organization warned last year that 2024 would mark the first time that over-65s would outnumber Europe's under-15 population.

Despite large increases in immigration over the past two decades, the continent still needs to attract enough workers whose taxes can help cover the growing cost of public pensions. Economists predict that by 2050, there will be less than two workers in Europe for every retiree, compared to three now.

Meanwhile, the annual public pension bill has reached more than 10% of gross domestic product (GDP) in 17 of the EU's 27 states — all but one of them in Western Europe. In Italy and Greece, pensions cost public finances more than 16% of GDP.

To help address the exorbitant and rising costs, several EU states have tinkered with their public pension systems, including by raising their retirement age. France, for example, faced months of angry protests last year over plans to force older workers to retire at 64, up from the current age of 62.

Other European countries have gone further, including the United Kingdom, which plans to keep people working until 68 from the mid-2040s onward. Women in Britain used to retire 5 to 7 years earlier than men, but a move to equalize the pension age sparked compensation demands for the affected women.........

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