Around 40% of individuals express a desire for an early retirement.
Approximately 35% of workers in various age groups exhibit no interest in continuing their employment until the mandatory retirement age, as per recent studies. This fact should not be disregarded by businesses. The survey suggests that it's not solely due to the perceived lazy attitude of the younger generation. Rather, the primary factor is the level of pleasure derived from the job itself.
As reported by the German 'Rheinische Post', around 65% of workers, which equates to nearly two-thirds of the socially insured employees in Germany, envision working until their retirement age. However, only half of this group actually wishes to carry on working till their retirement age. The disparity between those who can imagine working till the retirement age and those who desire to do so is not substantial across different age groups, with 66.4% of the under-35s and 62.6% of those aged 50-66 expressing their intentions.
A remarkable 17% of respondents confessed that they are neither physically nor mentally able nor willing to work beyond the retirement age. On the positive side, nearly half the respondents (48%) express their capability to work until retirement age, and also have the desire to do so. Interestingly, around 6% of the respondents would like to work until the standard retirement age but fear they might be unable to, while 14% acknowledge their potential to work into their senior years but prefer an early retirement.
High-income earners more likely to attain standard retirement age
The survey reveals that while age is less influential than assumed, responses differ significantly according to income level. High earners are more likely to have the ambition of working until retirement age, whereas the desire to prolong their employment is marginally higher among low earners, perhaps for financial security reasons. The critical factor influencing the retirement age decision is securing a decent standard of living in retirement.
The survey also indicates that many workers feel entitled to retirement after a lifelong commitment to work. However, this sentiment can potentially lead to resistance toward increasing the retirement age beyond 2031, even as life expectancy continues to increase, stretching retirement durations.
Job satisfaction and enjoyment play a significant role in the desire to work beyond retirement age. According to the survey, employees who remain energetic at work and view their employment as crucial are 13.2 percentage points more likely to aspire to work until their standard retirement age than low-engaged employees. Although financial incentives are often considered as means to encourage an older workforce, the survey emphasizes that health status, wellbeing, engagement, and willingness to learn are pivotal factors influencing the desire to work until retirement age. Enhancing workplace health management and prevention, including mental health, can help discourage early retirement.
The Institute of German Economics Cologne, in their analysis of the survey results, found that high-income earners are more likely to aim for working until the standard retirement age. Additionally, the Institute's report highlights that job satisfaction and enjoyment significantly contribute to the desire among workers to continue employment beyond retirement age.
