The employment rate for Germans aged 65-69 has risen from 13% in 2013 to 20% in 2023 [2].
According to the latest Altersübergangs-Report from the Institute for Work and Qualification (IAQ), the number of people working after retirement continues to rise. Prof. Dr. Martin Brussig (project lead) describes this as one of Germany’s most striking labor market shifts.
The main reason for this trend is financial necessity.
Increase in grocery prices in Germany in the last two decades ->
The average gross pension in Germany after 35 years of contributions is €1,620 per month [3]. You also pay taxes and health insurance premiums on it.
As you may imagine, this pension amount is not enough to cover living expenses.
Minimum income you need to live comfortably in Germany ->
How many retirees are working?
According to Deutsche Rentenversicherung, around 1.3 million pensioners were still working as of late 2022 [1]. Around 751,000 people were aged 65-69.
Here are some visible patterns:
- About half of retirees work fewer than 15 hours per week.
- Men work more than women
- West Germans work more than East Germans
- Higher-qualified individuals work more than low-skilled workers
What does this mean for you?
You must plan your retirement early. You cannot depend on the state pension alone.
As we have mentioned several times in our newsletters, you should build a retirement cushion. You can do this in the following ways:
- Invest in diversified ETFs, such as the MSCI World ETF. You can open a free trading account and start an ETF savings plan to invest a fixed amount every month automatically.
- Invest in real estate. You can learn everything about buying a property in Germany in our book.
- Consider private pension plans. While we don’t consider them the best option, they work well for people who lack the discipline to invest a fixed amount each month.
Understand the German pension system ->
If you are already retired
As of January 2026, Germany introduced the “Aktivrente” (active pension). According to active pension, you can earn up to €2,000 per month tax-free.
However, you should be working in a job subject to social contributions after retirement.
Note: Active pension applies only to those who have reached the statutory retirement age, not to those who retired early.
