Easier to extend employment contracts
The German government made it easier to extend employment contracts beyond the
pensionable age for workers who start receiving their pension in 2014.
lose pension wealth if they postpone their decision to draw old-age pensions beyond the age
of 60 (OECD, 2015b). Current rules cut pension benefits by up to two thirds if pensioners on
early retirement enter a new employment relationship.
Employers pay unemployment and
pension insurance contributions when they employ pensioners who have reached the
pensionable age or receive a full pension, although these workers do not accrue the
corresponding entitlements. The government is considering steps to correct this.