(de-news.net) – In the past, retirement transitions were usually characterized by a total cessation of paid employment prior to receiving a pension. This established pattern has gradually eroded, as a growing number of individuals now remain economically active while already receiving a pension. The available evidence scrutinized by Hans-Böckler-Stiftung, IAQ, and Universität Duisburg-Essen suggests that this shift reflects a durable structural transformation in the organization of later working lives rather than a short-lived or exceptional development.
Labor market statistics document a pronounced rise in employment at older ages over the past decade. Between 2014 and 2024, the number of workers aged 65 to 69 increased markedly, reaching approximately one million individuals in this age group. By the end of 2023, close to 1.5 million pension recipients were engaged in paid employment. Although the majority of these individuals were employed in marginal or low-intensity jobs, a steadily growing share continued to work in positions subject to full social insurance contributions, in some cases even beyond the statutory retirement age. This trend unfolded alongside a series of regulatory adjustments that altered the incentives for combining employment with pension receipt.
Trends, working time, and current social variations
Among these changes, the abolition of earnings limits for early retirement pensions in 2023 played a particularly important role by removing financial disincentives to continued employment. At the same time, employment during pension receipt remains politically and socially contested. Supporters emphasize its potential to ease demographic pressures on the labor market, preserve firm-specific experience, and strengthen individual well-being through continued social participation and income generation. The report therefore adopts a systematic analytical approach that distinguishes between older workers with and without pension receipt. It traces recent employment developments among pension recipients, examines working time patterns in order to assess their effective labor supply, and analyzes social and sectoral differences that shape opportunities for employment beyond retirement.
Demographics and pension reforms drive change
Two main factors are identified as driving the increase in employment among pensioners. The first is demographic change. As large birth cohorts born between the mid-1950s and the late 1960s move into retirement age, the absolute number of individuals in older age groups has expanded. Even where employment rates decline with advancing age, large cohort sizes can still lead to rising absolute employment figures. The second factor consists of pension reforms. Higher statutory retirement ages and tighter access to early retirement options have delayed pension entry and extended working lives. While these reforms have reduced the number of pensioners at younger older ages, they have not prevented growth in the number of individuals combining pension receipt with employment, pointing to the continued relevance of employer demand and individual preferences.
Differences in working time provide further insight into how employment during pension receipt differs from employment prior to retirement. Older workers without pensions are predominantly employed full-time, whereas pension recipients are much more likely to work part-time, often for fewer than 15 hours per week. Around half of employed pensioners fall into this category, a pattern that is already evident among those aged 60 to 64. At the same time, a substantial minority—around one quarter—of employed pensioners continue to work full-time, including a notable share of individuals aged 70 to 74.
Further differences among groups of pensioners
Clear social and regional differences can also be observed. Employment alongside pension receipt is more common among men, in western Germany, and among individuals with medium or high levels of qualification. Although these patterns broadly mirror those found among older workers without pensions, the disparities tend to be less pronounced, suggesting a partial leveling effect associated with retirement. Sectoral variation is likewise pronounced. Agriculture, high-skilled services, trade, and certain personal services exhibit above-average shares of employed pensioners, whereas manufacturing and construction show comparatively low participation, likely reflecting physical demands or rigid organizational structures. In the public sector, low levels of employment during pension receipt appear to be linked less to job suitability than to restrictive personnel policies.
Taken together, the findings indicate that employed pensioners have become an increasingly important component of Germany’s labor supply. Demographic trends and pension reforms point toward further growth in this group, yet the report also suggests that the existing potential has not been fully utilized. Whether employment beyond retirement can be expanded in a sustainable manner will depend largely on firm-level practices, particularly the adoption of age-appropriate work design and more flexible personnel policies.
