Old-age security: How many elderly people are using the controversial early retirement option?

A recent survey by the Institute of German Economy (IW) has revealed that only 37% of people in their late 60s retired on time, with the rest opting for early retirement. This trend continued in the previous year, with 1.1 million people born between 1960 and 1963 taking their pension before reaching the statutory retirement age. The study focused on the behavior of baby boomers, particularly those born in the mid-1950s, when it comes to retirement.

In 2025, nearly seven million baby boomers received an early retirement pension, with over half of those retiring before the gradual age increase to 67. In 2023, only around 4.5 million people took their pension, indicating a significant shift in retirement behavior.

People born in 1958, the youngest generation below the retirement age, accounted for 27% of early retirees, with 18% receiving reduced pensions due to long-term insurance contributions. The popular pension without reductions is currently being debated within the Union-SPD coalition, as potential reforms aim to limit the eligibility for early retirement. However, the extent of these changes is still under discussion.

For those who retire at the regular age, only 37% of baby boomers (born in 1958) received a pension equal to the statutory retirement age. Out of these, 17% switched from a full early retirement pension to a regular pension. Only three percent of baby boomers received no statutory pension at all. The high coverage of early retirement is attributed to the "low threshold for qualifying for a pension," which requires just five years of insurance.

The researchers urge the government to utilize the current "window of opportunity" for pension reforms, as the aging society will increase the burden on contributors and taxpayers if no changes are made.