As German life expectancy has increased over recent decades, the number of years retirees draw a pension has also risen significantly.

How Germans Decide when to Retire
German Economic Institute (IW)
As German life expectancy has increased over recent decades, the number of years retirees draw a pension has also risen significantly.
Despite the consequent challenge to the financing of the statutory pension system, many employees in Germany cannot imagine extending their working lives. The present analysis, based on the IW Employee Survey, shows that around 48 per cent of employees consider themselves able, and express the desire, to work until they reach the official retirement age. Economic considerations are only one factor in the decision on when to stop working, with capacity to work and motivation also playing particularly important roles. Employees who feel healthy and content, who are enthusiastic about their work and keen to go on learning are more likely to consider a longer working life, regardless of their age or household income. As employees age, how enjoyable work is becomes an increasingly significant factor in deciding when to retire. Just under half of employees justify their wish to retire at a certain age in terms of how much they have already worked. This narrative suggests that social norms will continue to be diametrically opposed to a longer working life.

How Germans Decide when to Retire
German Economic Institute (IW)
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