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Half of German Workers Eye Early Retirement as Demographic Shift Intensifies Labor Crunch

Rodolfo Hanigan by Rodolfo Hanigan
June 23, 2026
in Analysis, Healthcare
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The DAK-Gesundheitsreport 2026 delivers a sobering snapshot: 44 percent of all employees in Germany plan to leave the workforce before reaching the standard retirement age. Among those aged 50 and above, the figure climbs to 52 percent. And among workers with health limitations, a full 60 percent say they want to exit early.

These intentions collide with a demographic reality that is already reshaping the labor market. By 2040, roughly 13.3 million people — nearly 30 percent of today’s labor force — will reach retirement age. The baby boomer generation is heading out the door, and younger cohorts cannot fully replace them.

The gap shows in workplace health data. Employees aged 50 and over average 26.9 sick days per year, compared with 17.4 days for younger colleagues. Absenteeism rates double from 5.8 percent at age 50 to 11 percent at age 66. Older workers get sick less often, the report notes, but when they do, they are out for much longer.

Right now, 5.5 million employees are between 55 and 59, and another 4.5 million are between 60 and 64. The share of over-55s in the total workforce rose from 20.7 percent in 2015 to 27 percent in 2025. Employment participation drops sharply with age: 85.3 percent of 55-to-59-year-olds still hold jobs, but that figure falls to 69.5 percent for those aged 60 to 64.

Andreas Storm, CEO of DAK-Gesundheit, is calling for stronger workplace health management. He stresses the need for greater appreciation of older staff and more effective prevention strategies. Those issues were at the center of a virtual networking event organized by the IHK Saarland on June 23, titled “Rethinking Absenteeism – Effectively Promoting Attendance.”

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A separate online workshop on June 26, run by the Chambers of Industry and Commerce and the Chambers of Crafts in Saxony-Anhalt, will focus on mental health awareness for training supervisors. The BAGSO Service Gesellschaft is meanwhile providing information on preventive care and early detection programs aimed at healthy aging.

Matthias Maurer, chairman of the Deutsche Rentenversicherung Nord, stated on June 19 that the statutory pension system remains the foundation of retirement security. But demographic pressures, he said, require comprehensive reforms: higher labor force participation, greater productivity, and — critically — longer working lives enabled by better health conditions.

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Rodolfo Hanigan

Rodolfo Hanigan

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