A report by the German Institute for Economic Research (DIW Berlin) shows that 7% of seniors in Germany continue to work past retirement age, translating to approximately 1.2 million people in the labor market. On average, they work 19 hours per week.
German analyses indicate that workforce participation declines with age: among 66-year-olds it stands at 20%, while among those over 74 it drops to just 2.3%. Men are more active (9.4%) than women (5%). Self-employed individuals account for 37.4% of working seniors, compared to an average of just 9% across all age groups. The self-employed work 26 hours per week.
People with higher education are the group most likely to continue working. Among self-employed seniors, as many as 55% hold a university degree. Among those aged 66–69 in very good health, 27.5% continue to work, compared to 18.9% of those in good health. However, only 2.6% of seniors in this age group report very good health. The statistical data clearly show that the worse a retiree's health, the lower their activity level and the shorter their working hours.
Seniors work across a variety of industries. The largest share is in healthcare (18%), followed by retail (15%), manufacturing (12%), and the liberal professions (12%). In some industries, the share of seniors is particularly notable — 7% in real estate and 6% in agriculture and forestry. This demonstrates that seniors help alleviate labor shortages in key areas of the German economy.
On January 1, 2026, the Aktivrente program takes effect — a new tax relief for retirees. Individuals who have reached the retirement age of 67 (for those born after 1963) may now earn up to 2,000 euros per month from employment free of income tax. Above 2,000 euros, tax is levied only on the excess, with no impact on the taxation of pension benefits.
Aktivrente is designed to encourage continued employment, mitigating the effects of demographic change and the shortage of skilled workers. The absence of an upper age limit allows people to work even in their later years. The government plans to evaluate the law after two years.
