Germany: early retirement under fire

Early retirement is becoming increasingly popular in Germany. However, more and more often, people who opt for this scheme then go on to receive benefits designed to keep older people in work. While this combination is advantageous for pensioners who continue to work, it could prove costly and counterproductive for the federal government and companies in sectors facing a shortage of skilled labour. Criticism is on the rise.

By Thomas Schnee. Published on 20 June 2025 à 11h31 - Update on 20 June 2025 à 11h32

According to statistics from the Institute for Employment Research (IAB) of the Federal Employment Agency (BA), German industry is currently cutting nearly 10,000 jobs every month. To avoid outright redundancies, these job cuts are often made through the offer of early retirement. It is not uncommon, as at Volkswagen and Bayer, for those who take up the offer quickly to receive bonuses of tens of thousands of euros. The early retirement option, known as ‘retirement at 63’ – though in reality, this age is increasing with the gradual transition to a legal retirement age of 67,…

Thomas Schnee

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