People in Germany are continuing to retire later and later

The average age at which people in Germany enter retirement has risen again over the past year, from 64,1 years in 2018 to 64,3 years in 2019. The age for women was particularly affected, mainly due to the Mother’s Pension II.

Pension age for women rises sharply

According to the German Pension Insurance Federation (Deutsche Rentenversicherung), the average age at which people start to draw their pensions has risen over the course of the last year. In 2018, the average age of retirement was 64,1; this rose to 64,3 in 2019.

This is largely due to an increase in the average entry age for women, from 64,1 in 2018 to 64,5 in 2019. In contrast, the retirement age for men remained at 64,0 years.

A spokesperson for the federation said that the main reason for the rise in the age of retirement for women was the Mother's Pension II, a reform to social security which commenced on January 1, 2019 and gave additional recognition to child-rearing periods in the overall calculation of pension entitlements.

This meant that some women were entitled to an old-age pension for the first time ever, even though many of them had long since passed the statutory retirement age. This reform therefore bumped up the average retirement age for 2019. 

Long term increase in retirement age

There has been a significant long-term increase in the average age people stop working in Germany over the past 20 years. Since 2000, the average age has risen by two years. “The reason for the long-term increase in the retirement age is, in particular, the raising of the age limits and the expiry of two earlier types of old-age pension,” said the pension insurance company.

The statutory age limit, the age at which someone can retire without deductions, is currently 65 years and eight months. It will increase to 67 years by 2031.