Abstract
Many recent reforms raise the age of retirement. But can all older individuals work longer? To answer that question this paper uses the European SHARE survey. Results are essentially fivefold. First, physical health and cognitive performance deteriorate with age. Second, the 50-54 employment rate is negatively impacted by ill health, less so by poor cognition. Third, ill health affects employment much more than hours. Fourth, there is no evidence of health justification bias (Bound, 1991). Finally, declining health & cognition explain at most 35% of the observed work reduction. This hints at a sizeable underused work capacity among elderly Europeans.