About every third company (36 percent) views the “active retirement” model as a useful tool to combat labor shortages. However, nearly one in four companies (28 percent) find it unhelpful or not helpful at all, according to a recent survey of HR managers conducted by Randstad and the Ifo Institute.
An Ifo researcher, Daria Schaller, noted that companies see active retirement as an opportunity to keep employees within the company even after they retire. She added that, conversely, some firms fear that this model does not solve the demographic problem but merely postpones it.
Furthermore, over two-thirds (70 percent) of companies reported already employing individuals receiving a pension before the active retirement system was introduced. For the remaining 30 percent, this was not the case. Regarding the workforce aged (or nearing) retirement, a large majority (83 percent) had been employed by the company before retirement; only 17 percent started in their current roles after their active working life had ended.
This active retirement system is scheduled to begin on January 1, 2026. Its aim is to incentivize employees to remain in a social security-mandated employment after reaching the statutory retirement age by offering a tax-free supplementary income of up to 2,000 euros per month (24,000 euros annually).
