About 1.1 million baby boomers in Germany drew early retirement pensions in 2024, even as the statutory retirement age climbed faster than the age at which workers actually left the labour force, according to data analysed by the Institut der Deutschen Wirtschaft.
The gap between policy and practice has widened: the standard retirement age rose by twelve months to 66 between 2012 and 2024, yet the average age at which people began drawing a pension increased by only eight months over the same period. Of roughly 19.3 million baby boomers living in Germany in 2024, around six million were receiving old-age pensions.
Policy changes have further encouraged combining work and retirement. Since January 2023, early retirees have been able to earn additional income without limits while keeping full pension benefits. The share of early retirees in continued employment rose sharply — from 18 percent to 25 percent among those with the longest contribution records. A new "active pension" rule taking effect in 2026 exempts up to 2,000 euros of monthly wages from tax for pensioners who continue working.