Background: In the last two decades labor market participation for older employees has undergone a gradual political paradigm shift in many European countries from a policy of early retirement to one of extending working lives and active aging.
Objective: This study investigated if this political paradigm shift is causing new social inequalities in retirement transition due to restricted financial possibilities for early retirement.
Material and methods: Data were derived from the European Union Labor Force Survey from the years 2006 and 2012 and selected European countries (Germany, Austria, Sweden and Estonia) were analyzed.
Results: Associations between the specific implementation of the policy of active aging, the freedom of choice in retirement timing and retirement transition were found. It seems that voluntary retirement transitions are highest in those countries where the labor market and social policies are most coherent and aimed at supporting older workers' employability.
Conclusion: The reduction of early retirement incentives should be supported by active labor market policies and a policy of extensive age-independent further training measures in order to minimize social inequalities.
Keywords: Aging; Inequalities; Labor force; Labor market; Social policy.