This paper investigates the employment of individuals older than 55 years old using a dataset for Catalonia. We pin down the groups of individuals associated with lower employment rates: females, disabled and people with low qualifications. Part-time work rates for this age group are low, suggesting that employment could increase through more flexi-time at work. We also evaluate a reform in 2002 that changed pension incentives to early retirement and launched fiscal incentives for employers to retain individuals aged 60 or older. Results suggest that the reform increased the probabilities to remain employed for the affected group. We estimate that had not been for the re- form, the employment for the age group 60–64 in 2004 would have been at least 1.6 percentage points lower.