Partial retirement: popular but not suitable for the future

Abstract

"This report examines the incidence and determinants of partial retirement in Germany for the years 1999 to 2007 focusing for example on enterprise size, branch of industry or occupational group of employed persons. The Partial Retirement Act was intended to facilitate a smooth transition from working life to retirement. Therefore the employers can reduce their working hours to half of the regular working time. It is also possible to opt for the so-called block release model - with a full-time work phase followed by a release phase. Partial retirement has become very popular in Germany: About 15.5 percent of all older workers between 55 and 64 years followed this pathway to retirement at the end of December 2007, most of them opted for the block release model. Moreover another aim was to help relieve the labour market by filling the released jobs with unemployed and trainees. This happens only in approximately one third of all partial retirement cases. In those cases the employer gets subsidies from the Federal Employment Agency. This is still possible for all partial retirement schemes starting by 31 December 2009. The report concludes that partial retirement in its current shape should not be continued, particularly in view of the demographic development." (Author's abstract, IAB-Doku) ((en))

Cite article

Wanger, S. (2009): Altersteilzeit: Beliebt, aber nicht zukunftsgerecht. (IAB-Kurzbericht 08/2009), Nürnberg, 12 p.