A recent study suggests that many people up to the age of 70 are willing to continue working after retirement, provided the right conditions are in place. The findings indicate that policy changes could unlock a significant labor potential among older adults.
Potential for 1.36 million full-time workers
According to the study, by 2035, it would be possible to engage workers aged 55 to 70 in jobs equivalent to 1.36 million full-time positions. This equates to around 1.5 million older individuals willing to work, as reported by labor market expert Eric Thode from the Bertelsmann Foundation.
The study highlights that a comprehensive set of measures is necessary to encourage older workers to remain in the workforce longer, take on more work, or even return from retirement. These measures would need to include financial incentives, relaxed labor regulations, the creation of age-appropriate workplaces, and expanded access to health care, care-giving, and support services.
Legal and tax changes required
The German Institute for Economic Research (DIW) conducted the model calculations on behalf of the Bertelsmann Foundation. It projects that, due to demographic changes, the number of employed people aged 55 to 70 will decrease by approximately 1.5 million by 2035, leaving a workforce of just under 9 million in that age group.
However, this decline could be offset if businesses and policymakers manage to offer tailored opportunities for older workers. Eric Thode told the German Press Agency that the right legal and tax frameworks would need to be implemented to make such programs successful.
