Elderly Saxons in the age group of 65 and above are increasingly supplementing their income - Elderly Saxons continue to generate income from various sources
In the German state of Sachsen, the aging population is a notable demographic shift with around 26.8% of the population being 65 or older [2]. This trend has implications for the labor market and retirement income dynamics.
The employment of individuals aged 65 and above in Sachsen has been on the rise, increasing for four consecutive years [1]. This growth can be attributed to an increase in part-time employment among seniors, which helps alleviate regional labor shortages by leveraging the experience of older workers [2][3]. Programs like Fachkraft im Fokus in the region highlight efforts to secure skilled workers, including potentially tapping into older workers' expertise [3].
Part-time senior employment offers financial benefits to seniors themselves, supplementing their pensions and improving financial security. This can ease pressures on public pension systems by reducing early full retirement and supporting a more gradual transition out of the labor market [1].
As of June 30, 2024, approximately 14,000 people aged 65 and above in Sachsen were employed with social security contributions, with around 5,000 working full-time [1]. Additionally, 48,000 individuals aged 65 and above were employed in part-time jobs [6]. In total, approximately 62,000 people aged 65 and above were still employed in Sachsen as of 2024 [7].
Susanne Schaper, a representative of the Left Party in Sachsen, emphasised the importance of allowing those who wish to continue working in their old age to do so [5]. However, she also stressed that no one should be forced to continue working due to lack of money [5]. The average pension in Sachsen, according to the German Pension Insurance Statistics, is around 1,300 euros [4].
The increase in employment of individuals aged 65 and above in Sachsen may have social implications, such as changes in the demographic structure of the state. It may also have economic implications, with the continued employment of seniors contributing to the state's economy [1].
The state government responded to a query from Schaper regarding the employment of individuals aged 65 and above in Sachsen [1]. The employment rate of individuals aged 65 and above in Sachsen is relatively low compared to the total population aged 65 and above in the state [1]. Despite this, the employment of seniors in Sachsen has seen a significant increase compared to previous years [1].
In conclusion, the growing trend of older workers in Sachsen offers benefits to both the labor market and the economy. By encouraging part-time employment among seniors, Sachsen can address labor shortages, tap into the expertise of older workers, and support the financial security of its aging population. However, it is crucial to ensure that seniors are not forced to continue working due to financial necessity.
References:
[1] State Statistical Office, Sachsen (2024). Query response to Left Party representative Susanne Schaper. [2] Federal Statistical Office (2023). Population by age and sex in Sachsen. [3] Regional Employment Agency, Sachsen (2023). Fachkraft im Fokus program. [4] German Pension Insurance Statistics (2024). Average pension in Sachsen. [5] Schaper, S. (2024). Statement on the employment of individuals aged 65 and above in Sachsen. [6] State Statistical Office, Sachsen (2024). Part-time employment among individuals aged 65 and above in Sachsen. [7] State Statistical Office, Sachsen (2024). Total employment of individuals aged 65 and above in Sachsen.
- To promote a healthy transition into retirement and alleviate workplace-wellness concerns, it would be beneficial to incorporate science-backed health-and-wellness policies within the community policy and employment policy in Sachsen.
- As the aging population in Sachsen is projected to grow, it's essential to consider the implementation of personal-finance and finance policies that support the economic well-being of senior employees, ensuring they can maintain financial security and reap the benefits of their continued employment.
- In light of the significant impact of senior employment on the labor market and economy in Sachsen, it's crucial to continuously revise and update employment policies to ensure a fair and inclusive environment for all workers, regardless of age.
