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Andrea Hammermann / Ruth Maria Schüler IW-Trends No. 3 19. September 2024 How Germans Decide when to Retire

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

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How Germans Decide when to Retire
Andrea Hammermann / Ruth Maria Schüler IW-Trends No. 3 19. September 2024

How Germans Decide when to Retire

German Economic Institute (IW) 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.

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How Germans Decide when to Retire
Andrea Hammermann / Ruth Maria Schüler IW-Trends No. 3 19. September 2024

How Germans Decide when to Retire

German Economic Institute (IW) German Economic Institute (IW)

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Männlicher Programmierer, der zu Hause in seinem Heimbüro arbeitet
Andrea Hammermann / Roschan Monsef / Oliver Stettes IW-Trends No. 4 22. January 2025

More Productive with AI?: How Companies and Employees Assess its Effects on Productivity

Almost one third of all employees in Germany have had at least one new artificial intelligence (AI) application introduced at their workplace since 2022. AI is most commonly used for automatic data processing and text recognition.

IW

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Oliver Stettes IW-Report No. 1 19. January 2025

Proliferation of works councils and the desire for interest representation

Works councils exist in 7 per cent of the German establishments with five and more employees. The coverage rate has fallen significantly in the long run. Non-existence of works councils is, however, not equivalent to a lack of participation by the employees.  ...

IW

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