According to the latest data, Germany has the oldest workforce in the entire European Union. In 2024, a full 24% of employed persons aged 15–64 were between 55 and 64 years old — the highest share in the EU, where the average stands at just 20.1%. This trend is no accident; it stems from demographic shifts, pension policy, and economic necessity.
The Federal Statistical Office (Destatis) has published alarming data based on Eurostat figures. In 2024, approximately 40.9 million people aged 15–64 were employed in Germany, of whom 9.8 million were in the 55–64 age bracket. That is more than in any other EU country. By comparison, the share in Italy is 23%, in Bulgaria 22.3%, while in Malta it is just 10.8%, Luxembourg 12.8%, and Poland 15.2%. These numbers show that Germany is well ahead of the rest of Europe in terms of workforce age.
The trend has been deepening for years. The average retirement age in 2024 was 64.7 years for both women and men — an increase of more than one year compared with 2004, when it was 63 for women and 63.1 for men. The figures also vary by sector: the highest share of older workers (29%) is found in public administration, with lower shares in financial services and insurance as well as in manufacturing.
The primary driver is an aging population. Low natural growth, declining birth rates, and rising life expectancy are causing the population to shrink. Added to this is pension policy: the gradual increase in the retirement age to 67 by 2029 and the elimination of early-retirement schemes that previously allowed people to retire as young as 60. Many individuals work longer out of financial necessity, as pensions do not suffice for a living, while companies, for their part, value the experience of older workers.
Immigration only partially alleviates the problem. Although Germany attracts migrants, many of them are young. OECD experts warn that over the next 40 years, Germany's working-age population will shrink significantly, straining the pension system. They suggest linking the retirement age to life expectancy to ensure a sustainable system.
Work culture is another factor. In Germany, older workers often remain active because employment gives them a sense of purpose and financial stability. Since January 1, 2026, tax-free active pensions have been introduced, encouraging the combination of retirement with employment. It is an innovative solution, but critics argue that it masks deeper demographic problems.
An aging workforce carries far-reaching consequences. On the one hand, the experience of older workers raises productivity and stabilizes companies. On the other, it threatens a lack of innovation, as young people bring fresh ideas — and those are in short supply in Germany. The labor market becomes less flexible, and healthcare costs rise, since older workers fall ill more often yet do not vacate their positions.
Destatis has launched a dedicated webpage with data on the future number of retirees, senior employment, and pension expenditures in order to monitor this troubling situation. The OECD forecasts that without reforms, Germany will have to dramatically increase pension contributions or cut benefits.
Countries like Poland or Malta, with younger workforces, can reap the benefits of immigration and higher birth rates, but Germany must act swiftly. Possible solutions include incentives for childbearing, easing pathways for migrants, and training programs for older workers to help them adapt more easily to new technologies.
