A Global Snapshot: Where Workers Can Exit the Workforce Earliest

The Retirement Age Reality Around the World

The promise of leaving the workforce at 57, 58, or even earlier remains appealing to millions, yet rising life expectancy and underfunded pension systems are pushing many nations toward later retirement dates. Interestingly, significant geographic and gender gaps persist. While developed economies like Germany and Austria maintain retirement ages around 60-65, several emerging markets still permit much earlier exits—though this landscape is shifting rapidly.

Understanding retirement structures matters because most countries operate either defined contribution systems (where worker and employer contributions are invested and returns determine benefits) or defined benefit plans (offering fixed retirement income regardless of market performance).

The Youngest Retirement Ages: A Closer Look

Indonesia Leading the Early Retirement Wave

Indonesia currently offers one of the world’s lowest retirement thresholds at age 57 for both genders. However, this won’t last. Starting 2024, the retirement age will incrementally rise to 58, increasing another year every three years until reaching 65 by 2043. Workers in the private sector contribute to the state-managed social security program and can choose between lump-sum payouts or a combination of lump sum with ongoing periodic distributions.

China’s Gender-Based Approach

China presents a unique system stratified by both gender and occupation. Male workers retire at 60, while women in office roles exit at 55 and those in manual labor at 50. Notably, individuals in physically demanding positions can retire even earlier—women at 45 and men at 55. The dual pension framework includes basic pensions (1% of average wages annually for those with 15+ years of contributions) and defined contribution pensions (where workers allocate 8% of wages to individual accounts, with payouts based on age and national life expectancy).

Russia’s Early Retirement Window (Before Reform)

Currently, Russian men can retire at 60 and women at 55—though this window is closing. By 2028, the government plans to raise these ages to 65 and 60 respectively due to demographic aging and pension system stress. A crucial caveat: men with 42+ years of service or women with 37+ years can retire early but cannot claim pensions until reaching standard age thresholds. All workers must contribute for at least eight years before eligibility.

Saudi Arabia’s Universal 58

Saudi Arabia permits both men and women to retire at 58, a relatively balanced approach. Workers must contribute to a mandatory public pension system for a minimum of 120 months (10 years) to collect at 58, or 300 months (25 years) to withdraw at any age. Notably, the government increased minimum pension benefits by 20% in 2023, signaling commitment to retiree security.

India’s Sector-Dependent Timeline

India’s retirement framework varies by employment sector. Government workers and central employees typically retire at 60, though Kerala raised its government worker threshold to 60 only in 2020. Private sector access remains limited—only about 12% of Indian workers are covered by the formal Employees’ Pension Scheme (requiring age 58 with 10+ years of contributions) or the Employees Provident Fund (requiring age 55). This fragmented system creates significant coverage gaps.

Turkey’s Gradual Age Increase

Turkish men currently retire at 60 and women at 58, but reform is underway. A 2023 policy allows those who enrolled in social insurance by September 8, 1999 to collect pensions with specific contribution requirements (25 years for men, 20 for women). Turkey is systematically raising its retirement age to 65 for both genders by 2044, a phased approach designed to minimize disruption.

South Africa’s Means-Tested Model

South African retirees access pensions at 60, contingent on a means test. The “older person’s grant” requires 60+ age plus proof of limited income and assets. Beyond the public system, employers and employees can contribute to voluntary private pensions, creating a hybrid structure.

Colombia’s Gender Gap

Colombia maintains one of the world’s widest gender gaps: men retire at 62 while women exit at 57. Workers choose between a public pay-as-you-go system and a private individual plan, with switching permitted every five years until 10 years before retirement. Dual participation isn’t allowed.

Costa Rica’s 25-Year Requirement

Costa Rica sets retirement at 65 for both men and women, requiring 300 months (25 years) of contributions for full benefits. Those with 180-300 months of contributions receive proportional pensions. The system includes supplementary individual account pensions and voluntary defined contribution options.

Austria and Germany: Western Standards

Austria permits men to retire at 65 (with women currently at 60, rising to 65 by 2033) through a defined benefit system requiring 180 months of contributions. Germany follows similar Western patterns with comparable retirement ages, reflecting developed economies’ emphasis on longer working lives and sustainable pension funding.

The Takeaway: Planning Beyond Age

Regardless of which country’s retirement age appeals to you, securing early exit from the workforce requires intentional planning. Most nations mandate specific contribution years before pension eligibility, meaning aspiring retirees must start decades in advance. The global trend toward later retirement ages—even in nations historically permitting early exits—underscores the fiscal pressures aging populations place on pension systems worldwide.