Some people can hardly wait to retire while others would never consider it. In fact, more and more people are continuing to work after retirement: While 3.3 percent of those over the age of 64 were still working in 2005, 7.8 percent were still working in 2019.
But are people working in retirement due to financial need, as is commonly believed? Holger Schäfer, an economist at the German Economic Institute in Cologne, has come to a different conclusion based on an analysis of data from Living in Germany. If retirees were working because they needed the money, their pensions would have to have extremely low— but as Schäfer’s analysis shows, this is not the case.
The results of other studies also suggest that financial motives play a subordinate role. “Previous studies have shown that people enjoy working and being in contact with others, and that this is more important to them than the extra money,” says Holger Schäfer.