{"id":46129,"date":"2025-09-09T10:06:18","date_gmt":"2025-09-09T08:06:18","guid":{"rendered":"https:\/\/www.silvereco.org\/en\/?p=46129"},"modified":"2026-01-22T13:48:10","modified_gmt":"2026-01-22T12:48:10","slug":"germany-retirees-urged-to-return-to-work-to-save-the-system","status":"publish","type":"post","link":"https:\/\/www.silvereco.org\/en\/germany-retirees-urged-to-return-to-work-to-save-the-system\/","title":{"rendered":"Germany: Retirees urged to return to work to save the system"},"content":{"rendered":"\n<p>Faced with a pension system crisis in Germany, Chancellor Friedrich Merz has proposed a solution: encouraging retirees to return to work by offering a tax exemption of up to \u20ac2,000 per month. A \u201csolution\u201d that is sparking debate in a country where the retirement age is already set at 66, soon to rise to 67.<\/p>\n\n\n\n<!--more-->\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-travail-seniors-1024x576-1.png\" alt=\"pension system\" class=\"wp-image-46130\" srcset=\"https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-travail-seniors-1024x576-1.png 1024w, https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-travail-seniors-1024x576-1-400x225.png 400w, https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-travail-seniors-1024x576-1-768x432.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list has-ast-global-color-6-background-color has-background\">\n<li><strong>Germany: Chancellor Friedrich Merz proposes a tax exemption of up to \u20ac2,000\/month to encourage retirees to return to work.<\/strong><\/li>\n\n\n\n<li><strong>The German pension system costs \u20ac408 billion in 2024, up 60% since 2010, and is no longer financed solely by contributions<\/strong><\/li>\n\n\n\n<li><strong>The statutory retirement age will rise to 67 by 2031, with debates around a possible extension to 70.<\/strong><\/li>\n\n\n\n<li><strong>More than 1.1 million seniors already work beyond the age of 67, often to maintain both a social and financial role.<\/strong><\/li>\n\n\n\n<li><strong>The success of this reform will depend on adapting jobs and fighting age-related discrimination in the labor market.<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">German pension system: The \u201cend of the welfare state\u201d<\/h3>\n\n\n\n<p><strong>The cost of pensions in Germany reached \u20ac408 billion in 2024<\/strong>, a <strong>60% increase<\/strong> compared to 2010. Social contributions are no longer sufficient to cover pensions, and <strong>retirees now make up a quarter of the German population<\/strong>. This situation is <strong>straining the pension model<\/strong>, long supported by the country\u2019s prosperity and industrial competitiveness.<\/p>\n\n\n\n<p>\u201c<em><strong>The welfare state as we know it today is no longer financially sustainable<\/strong><\/em>,\u201d declared Friedrich Merz at the end of August. The Chancellor is paving the way for an \u201c<strong><em>autumn of reforms<\/em><\/strong>\u201d to <strong><a href=\"https:\/\/www.silvereco.org\/en\/demographic-aging-a-major-threat-to-global-growth\/\">address the economic crisis<\/a><\/strong> facing the country, making pensions one of his government\u2019s top priorities.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-systeme-des-retraites-1024x576-1.png\" alt=\"pension system\" class=\"wp-image-46131\" srcset=\"https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-systeme-des-retraites-1024x576-1.png 1024w, https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-systeme-des-retraites-1024x576-1-400x225.png 400w, https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/une-systeme-des-retraites-1024x576-1-768x432.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Between tax exemptions and raising the retirement age<\/h3>\n\n\n\n<p>To encourage <strong>seniors to <a href=\"https:\/\/www.silvereco.org\/en\/in-japan-it-is-possible-to-hire-a-grandmother-for-companionship-and-life-advice\/\">return to work<\/a><\/strong>, the German government is considering granting <strong>tax exemptions<\/strong> of up to \u20ac2,000<strong> <\/strong>per month for the incomes of retirees who work until the<strong> statutory retirement age<\/strong>, which will rise to <strong>67 by 2031<\/strong>, compared to <strong>66 today<\/strong>.<\/p>\n\n\n\n<p>In 2024, more than <strong>1.1 million seniors were working beyond the age of 67<\/strong>, in a country of 46 million people. The motivations for resuming activity often go beyond financial reasons, with a search for purpose and <strong>social participation<\/strong>.<\/p>\n\n\n\n<p>An independent commission is expected to propose structural reforms by 2027 to stabilize the <strong><a href=\"https:\/\/www.silvereco.org\/en\/china-a-historic-reform-for-an-evolving-pension-system\/\">pension system<\/a><\/strong>. <strong>Economy Minister Katherina Reiche<\/strong> has also raised the possibility of<strong> pushing the retirement age to 70<\/strong>\u2014an option that has ignited heated debates among trade unions, political parties, and experts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employment for seniors: Jobs that need adapting<\/h3>\n\n\n\n<p>The <strong>return of seniors to the labor market<\/strong> also depends on adapting jobs to the <strong>abilities of older workers<\/strong>. Many seniors hold skilled positions and demonstrate punctuality, dedication, and low absenteeism. <strong>The challenge remains for companies<\/strong>, some of which continue to discriminate against this age group despite their recognized experience and productivity.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/emploi-seniors-1024x576-1.png\" alt=\"back to work pension system\" class=\"wp-image-46132\" srcset=\"https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/emploi-seniors-1024x576-1.png 1024w, https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/emploi-seniors-1024x576-1-400x225.png 400w, https:\/\/www.silvereco.org\/en\/wp-content\/uploads\/2025\/09\/emploi-seniors-1024x576-1-768x432.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Germany: A pension system in transition<\/h3>\n\n\n\n<p><strong>The proposed tax incentive for <a href=\"https:\/\/www.silvereco.org\/en\/swiss-retirees-the-happiest-in-europe-according-to-a-study\/\">retirees<\/a><\/strong> is a pragmatic measure to ease <strong>pressure on the pension system<\/strong> while sustaining economic activity. Its success, however, will depend on <strong>seniors\u2019 willingness to keep working<\/strong> and on<strong> companies\u2019 ability to make efforts<\/strong> in terms of inclusion and workplace adaptation.<\/p>\n\n\n\n<p>With an <strong>aging population<\/strong> and rising pension costs, Germany is betting on the experience and motivation of its elders <strong>to secure the viability of its social model<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>#Germany: #Retirees urged to return to #work to save the #system<\/p>\n","protected":false},"author":33,"featured_media":46130,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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#Retirees urged to return to #work to save the 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