Introduction

Among the array of challenges that arise in the wake of population ageing, one of the most topical is probably the question about the length of working life. Increasingly, extending working life is believed to be a necessary measure for maintaining economic competitiveness, since predictions suggest that the labour force in many countries will decrease, or at least stop growing. Governments in most Western countries have concluded that the prospect of retaining acceptable levels of productivity and economic growth and, consequently, the ability to maintain previous levels of welfare provision and general standards of living, requires the mobilisation of all available labour resources (Organisation for Economic Co-operation and Development, 2006).

One key target in that context has been older workers, and many countries have adopted strategies to increase labour force participation in old age by decreasing the prevalence of early retirement and by raising the official pension age above the age of 65. However, scholars are questioning whether such measures will be sufficient to achieve these policy goals (Dragano et al, 2011). Even if supplyside measures such as pension age reforms, given increased life expectancy, seem reasonable and rational, it is likely that such measures to prolong working life will have behavioural effects mainly for a certain selected part of the workforce – that is, employees in privileged social positions, who have favourable working conditions and are in good health. The main reason for this is that the question of how, when and why people depart from paid labour is a profoundly complex one that involves a very broad set of determinants that are related to macro, meso and micro levels of explanation. Together, conditions at these levels define what we may call an opportunity structure surrounding the decision to retire and leave work (Wang et al, 2011).

At the macro level, populations and individuals are influenced through incentives and disincentives in social policies, social norms, the economy and demography, whereas at the meso level influence is exerted through work experiences, work organisations and family. The micro level concerns the individual's physical and mental health, and financial and social situations. All of these levels are of importance in defining the opportunities and constraints that affect individuals’ subjective evaluation and capabilities regarding the prospect of retiring or remaining active in the labour market.