Germany is facing a significant aging of its active population, with 24% of the workforce being between 55 and 64 years old, according to Eurostat data. This represents nearly 10 million employees out of a total of 41 million.
The proportion is the highest in the European Union, compared to the average of 20.1%. The average retirement age is 64 years and 8 months, and this will gradually increase to 67 years by 2029. Chancellor Friedrich Merz promotes "active retirement," offering financial incentives for those who continue to work after the legal retirement age.
Additionally, the liberal wing of the CDU proposes raising the retirement age to 70, an idea contested by unions. Demographic decline and the shortage of skilled workers pose major challenges for the German labor market, with a population decrease of 100,000 people by 2025.
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