Randstad study shows: This is what employees in Germany think about their retirement
The planned increase in the retirement age is causing an uproar in France, and a gradual increase in the retirement age is also being discussed in Germany. But when do employees actually want to retire? A current Randstad study provides the answers – and also shows what prevents employees from implementing their wishes.
More than every second employee in Germany (51%) expects to retire between the ages of 65 and 69. Employees in this country therefore expect a potentially longer working life than most of their European neighbors. In France, for example, where Emmanuel Macron’s pension reform has been driving thousands onto the streets for months, 54% of employees expect to retire between the ages of 60 and 64 (Germany: 31%). That shows that Randstad Labor Barometer 2023. On average in north-west Europe, 29% expect to retire between the ages of 60 and 64, and 43% between the ages of 65 and 69.
Younger employees expect to retire later
The calls for an increase in the standard retirement age are becoming more and more frequent in Germany as well. In view of the demographic change and the associated challenges for the pension funds, many experts believe that the working life must be adjusted to the increasing life expectancy. Younger employees already seem to expect such an adjustment: 14% of 18-24 year olds and 15% of 25-34 year olds expect to retire between the ages of 70 and 74 (average: 9%).
“Demographic change is presenting the entire labor market with gigantic challenges. Increasing the working life is a necessary step,” says Carlotta Köster-Brons, Head of the Capital Office & National Coordinator CSR at Randstad Germany. “But this step alone will not be enough. Above all, we need to get more people into work. The necessary measures include, above all, activating unused potential on the labor market: many people would like to increase their working hours, but are unable to do so due to an inadequate infrastructure in the area of childcare, or have unjustifiably higher barriers to entry into the labor market, such as older job seekers or refugees. On the one hand, politicians are called upon to finally create the right framework conditions to enable as many people as possible to participate in working life. On the other hand, the attitude in the HR departments must also change, which must become significantly more flexible.”
77% of employees continue to work for financial reasons
After all, there is already a large gap between the reality of pensions and what employees want. They would like to be able to retire much earlier: 41% of Germans would like to retire between the ages of 60 and 64, 33% even before the age of 60 – and only 10% between the ages of 65 and 69.
What prevents employees in Germany from retiring at the time they want? After all, more than one in four (27%) state that they want to continue working because work occupies an important place in their personal lives. 11% keep working because they think their employer needs them. Most of the time, however, financial reasons are decisive – namely for 77% of those surveyed. “The abolition of the additional earnings limit for early retirement pensions and disability pensions as of January 1, 2023 shows the complexity of the issue,” explains Carlotta Köster-Brons. “It is basically good that work is worthwhile for early retirees and that they remain productive. But it would be even better if more people than before could remain fit and healthy until they reach regular retirement age and thus be able to stay in their actual professional field.”
About the Randstad labor barometer
The Randstad labor barometer was launched in 2003 and now covers 34 countries around the world. The study is published once a year and makes both national and global trends on the labor market visible. Various pulse surveys in selected countries supplement the Randstad job barometer with insights into current developments over the course of the year. The survey is conducted online among employees aged 18 to 65 who work at least 24 hours a week in paid, non-self-employed/freelance work. The minimum sample size is 800 interviews per country.
Randstad is Germany’s leading personnel service provider. We help companies and workers to realize their potential by combining our technological expertise with our human touch. We call this principle human forward. In the Randstad Group Germany we are based in 300 cities with 47,350 employees and around 530 branches. Our sales volume is around 2.014 billion euros (2022). In addition to classic temporary work, our portfolio includes the business areas of professional services, permanent placement, HR solutions and in-house services. As an experienced and trustworthy partner, we create tailor-made personnel solutions for our customer companies. Our individual performance and development offers for employees and applicants also make us an attractive employer and service provider for specialists and managers. Active in Germany for more than 50 years, we belong to the Dutch Randstad NV with the Randstad Group Germany. Total sales of around 27.6 billion euros (year 2022), around 662,200 employees in daily use and around 4,900 branches in 39 markets make our international group of companies the largest personnel service provider in the world. In addition to Randstad Deutschland GmbH & Co KG, our national branches also include the companies Tempo Team, Gulp, Monster, twago, Randstad Sourceright, Randstad Outsourcing GmbH as well as Randstad Automotive and Randstad Financial Services. CEO is Richard Jager.