More Retirees in Germany Are Working – Education Makes the Difference

Background: Education and Career Path

The statisticians see a clear connection in the data between educational attainment and labor force participation at an older age. Those who have carried out qualified activities over many years in their working life often bring with them the prerequisites to remain employed even after the official retirement age, according to the evaluation.

In contrast, people with lower educational attainment are, according to the statistics, more often in physically demanding jobs, which less frequently enable continued employment in retirement. The availability of suitable job offers also plays a role, according to the Federal Office's assessment.

Many Work of Their Own Accord

Overall, the figures point to a trend that has gained importance in recent years: employment among older people is increasing in Germany. The Federal Statistical Office attributes this, among other things, to demographic change, a higher retirement age, and changed career biographies.

Many of the working retirees are, according to Destatis, not solely dependent on the additional income. Sometimes it is about avoiding an abrupt transition into retirement, sometimes about the desire to continue pursuing a meaningful activity. Social contacts in everyday working life are also frequently cited as a motive.

Economic and Social Assessment

From an economic perspective, the employment of older people can help alleviate the shortage of skilled workers in Germany. Employers in sectors with acute personnel needs are increasingly relying on experienced employees who remain with the company beyond retirement age.

At the same time, experts point out that additional employment does not have the same significance for all groups. While older, highly qualified individuals tend to continue working of their own accord, financial necessity is more often apparent among those with lower educational attainment, for example, to supplement their pension.

Data Basis and Outlook

The Federal Statistical Office intends to continue monitoring the development and to evaluate it again in upcoming surveys. Future reports will show, among other things, how the employment rate of older people is distributed across individual federal states and occupational groups.

The figures now published come from the microcensus, the annual household survey conducted by the Federal Statistical Office. They form the official data basis for analyses of labor force participation of the population in Germany.

Overall, the data show that education is the decisive factor when it comes to the question of whether someone continues to work in retirement. The range between 10 and 18 percent makes clear how great the influence of educational attainment on employment at an older age in Germany currently is.