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Germany Braces for Boomer Retirements That Will Cut Today’s Workforce by About a Third by 2039

Berlin is pushing incentives for post‑retirement work to ease labor shortages.

Overview

  • Official microcensus-based data show about 13.4 million people will reach the statutory retirement age within 15 years, removing roughly 31% of today’s labour force.
  • Younger cohorts are too small to offset the exits, with acute demand in skilled trades even as unemployment rises for some young graduates and AI reshapes job tasks.
  • The government promotes more favourable earnings rules for retirees and higher senior labour participation is already visible, according to recent trends.
  • Despite efforts to keep older people working, longer lifespans and widespread early retirement continue to increase the duration and cost of pension payouts; an IW study finds nearly half of boomers retire early.
  • Analysts warn of heavier redistribution from young to old that could crowd out investment, and 2025 turnout skewed toward older voters raises concerns about the balance of generational interests.