Key messages: Pension reforms can alter the incentives to work and influence workers’ decisions on the timing of retirement. Reform measures include reductions of pension replacement rates, increasing the official and the earliest ages of retirement, and correcting the increments and decrements of pension benefits for early and late retirement. More flexibility in combining work and pensions could also help to increase labour-market participation of older people. Pension reform has been widespread across OECD countries, but a number of difficult issues remain in terms of finding the appropriate balance between, on the one hand, encouraging later retirement and, on the other hand, increasing flexibility in work-retirement choices. These issues include the appropriate design of more actuarially-neutral pension systems and whether countries should go beyond actuarial neutrality and take a more active stance in terms of promoting later retirement. Finally, while pension systems are being reformed, it is essential to ensure that other welfare benefits are not used unjustifiably as paths to early exit from the labour market.