Germany’s 2026 ‘active pension’ scheme aims to ease labor shortages—but will it work?

Retailers and employers bet on Germany’s bold pension reform to fill 122,000 vacancies. Yet critics question whether the plan goes far enough to solve deep-rooted shortages.

, and Administrator

2025 December 12 . 9:03 AM

1 min read

In this picture, it seems like a store, posters and a building in the foreground.

Germany’s 2026 ‘active pension’ scheme aims to ease labor shortages—but will it work?

Germany’s new 'active pension' scheme is set to launch on 1 January 2026, aiming to tackle widespread labour shortages. Multiple industries plan to adopt the programme early, with employers hoping it will encourage older workers to stay in their jobs longer. However, concerns remain over its limited scope and impact on certain sectors.

The German Retail Federation (HDE) is pushing to use the scheme to fill around 122,000 vacant roles. Stefan Genth, HDE’s managing director, welcomed government incentives but called for the programme to include self-employed workers. He argued that broader access would make the policy more effective.

The active pension scheme will begin in January 2026, offering a partial solution to Germany’s labour shortages. While some industries see potential, others highlight its limitations—particularly for self-employed workers and low-paid professions. The policy’s long-term effects will depend on uptake and possible future expansions.