Opinion: An early retirement without deductions is possible - but unfair - Germany’s baby boomers rush into early retirement at record rates
Early retirement is becoming the norm for many baby boomers in Germany. Nearly half of this generation now leave work before the standard pension age. A key factor is the ‘retirement at 63’ scheme, which allows penalty-free exit after 45 years of contributions—regardless of actual age or job demands.
In 2023, 1.8 million baby boomers retired early, making up over 55% of all new retirees. This trend is set to grow, with at least one million taking early retirement each year from 2025. The peak of the baby boomer wave will hit the standard retirement age in 2031.
The early retirement trend shows no signs of slowing. With a growing number of baby boomers leaving work early, pension expenditures will climb significantly. The system’s focus on contribution years—not job strain—means costs will keep rising unless changes are made.
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