Written by David Rosbotham DipPFS | Financial Planner

Introduction: The Pension Clock Is Ticking

The global retirement landscape is changing faster than many people realise. As populations age and life expectancy rises, governments are quietly moving the goalposts on when we can retire. It’s no longer a distant worry, it’s a reality unfolding now.

For those in their 30s and 40s, this means one thing: if you’re relying solely on a state pension, you could be in for a shock.

The Shifting Retirement Landscape: Governments Are Raising the Goalposts

Across Europe, countries are reforming pension systems to stay financially viable and that almost always means increasing the pension age.

Germany recently reignited debate after officials suggested the statutory pension age could eventually rise toward 70 or even 73, citing the need to ensure long-term sustainability of its pension system. While the official age will reach 67 by 2031, reforms passed in 2024 now include incentives for people to work longer (Reuters).

Germany isn’t alone. In Denmark, lawmakers agreed in 2025 to raise the pension age to 70 by 2040 for those born after 1970 (Business Insider). The change is tied to life expectancy, meaning that as Danes live longer, the retirement age will continue to increase automatically (Euronews).

The Netherlands has a similar model, its state pension age, currently 67, will rise further as average life expectancy increases. And in France, a controversial reform pushed the pension age from 62 to 64, sparking mass protests but highlighting the fiscal realities facing developed nations (EU Reporter).

The message is clear: if you’re in your 30s or 40s today, there’s no guarantee that you’ll be able to retire on the same terms as previous generations. Pension ages are creeping upward and they’re unlikely to stop.

Longer Lives, New Opportunities: The Rise of the Older Entrepreneur

While governments push retirement ages higher, something inspiring is happening: more people in their 60s and 70s are becoming entrepreneurs. This shift is reshaping what aging looks like, it’s not just about living longer, but living better and staying engaged.

In the UK, the number of self-employed people aged 60+ reached 991,432 in 2023, a record high according to Enterprise Nation. In the U.S., the Kauffman Foundation reports that those aged 55–64 now make up nearly 23% of new entrepreneurs, up from around 15% in the late 1990s (Forbes).

In fact, data from Kauffman shows that more than one in four new entrepreneurs are 55 or older and a study by MIT’s Sloan School found that older founders are often more successful: a 50-year-old founder has almost twice the success rate of a 30-year-old (JD Meier).

This trend shows that age is no barrier to innovation and that older adults are using their experience, networks, and wisdom to stay active in the economy. People are living longer, healthier lives, and many are choosing to stay active and financially independent by creating their own opportunities.

What If You Don’t Want to Work Until 70?

Of course, entrepreneurship isn’t for everybody and not everyone wants to work until 70. Many people in their 30s and 40s don’t dream of running a business and the thought of decades more work feels daunting, especially in fast-moving industries where burnout is common. Most people simply want financial security and the freedom to retire comfortably without working into their seventies. 

Here’s the hard truth: relying on the state alone may not be enough. Pension funding is tightening, benefits are changing, and the rules can shift overnight. The good news is, there’s a solution within reach, it just requires a mindset shift. You may not be able to change the system, but you can prepare for it.

Start by paying yourself first. Before you pay bills, before you budget for leisure, automatically transfer 5% of your income into a pension or investment account, or other long-term savings vehicle. Most people think they can’t afford to save, but it’s a habit, not a luxury. You’ll adapt your spending around it and soon enough, it becomes part of your normal monthly rhythm. Over time, that 5% can become 10%, and as your income grows, so will your savings and your future security. The satisfaction of watching your portfolio or pension pot grow can become its own motivation, reinforcing the habit over time.

Demographics Don’t Lie: A Global Reality Check

Demographic data paints a sobering picture. In Germany, the old-age dependency ratio (the number of retirees per working-age adult) is projected to rise from around 34% today to over 50% by 2050 according to European Pensions.

That means fewer workers will be supporting more retirees, placing enormous pressure on public finances. Governments will face tough choices: higher taxes, benefit cuts, or push back the retirement age even further. None of those options are ideal, but they’re inevitable.

History tells us that the pension rules can and do change. The question isn’t if they’ll change again, it’s when. Those who rely solely on state pensions could find themselves working years longer than they planned or facing lower income in retirement.

The Case for Starting Now: Compounding Works in Your Favour

The earlier you start saving and investing, the less you need to contribute later. Compound growth (earning returns on your returns) is the quiet miracle that rewards consistency and time. Even modest regular contributions can snowball into significant wealth over 20 or 30 years.

More importantly, saving early gives you flexibility and control. It allows you to make choices; whether that’s early retirement, part-time work, or funding your own business later in life.

Many people tell themselves they’ll start saving ‘when they earn more.’ But when that raise or bonus comes, lifestyle inflation eats it up. If you flip that habit and make saving your first expense, you’ll find a way to make ends meet. The truth is simple: if you don’t start now, it only gets harder. But once you begin, over time, it becomes easier and more rewarding.

Conclusion: Don’t Rely on the State – Invest in Yourself

The writing is on the wall. Governments across Europe and beyond are pushing retirement ages higher as life expectancy rises. People are living longer, and the math simply doesn’t work the way it used to. More people are taking control of their futures, whether by starting businesses later in life or by investing and saving early.

If you’re in your 30s or 40s, don’t leave your future to chance. You can’t control what happens to the state pension, but you can control your own habits. Start small, automate your savings, and build your future step by step.

Because the government has moved the goalposts before and if they change the game again, you’ll want to be playing on your own terms.

Start today. Pay yourself first. Your future self will thank you.