Germany's Retirement Debate Collides With Record Mental Health Absences

The political battle over when Germans should stop working is heating up — but the country's sick notes tell a different story. New data from health insurer KKH shows that stress-related diagnoses reached an all-time high in 2025, with 119 sick days recorded per 100 insured members. That's up from 112 in 2024 and a dramatic jump from 66 just eight years earlier, making mental health conditions the third most common reason for workplace absence in Germany.

Experts point to a familiar mix of culprits: heavy workloads, overtime, and office conflicts, now compounded by financial strain and the blurring boundaries of mobile work. A survey of industrial employees reinforces the picture — 44 percent say their burden has grown, largely due to cost-cutting and staff reductions. The divide is stark inside companies too: 59 percent of production workers report severe strain, compared to a smaller share in administrative roles.

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Early Retirement Becomes the Norm

Those health pressures are reshaping how Germans think about their pensions. According to the DAK health report, 54 percent of workers over 50 in Lower Saxony plan to retire before reaching the standard age, with the national figure at 52 percent. Among those already dealing with health issues, the willingness to exit early climbs to 57 percent. Only 38 percent of respondents intend to keep working until the regular retirement threshold.

The data reveals an interesting wrinkle: older employees actually call in sick less frequently than their younger counterparts. But when they do fall ill, they're out for an average of 16.2 days — twice as long as younger workers.

So what would persuade more people to stay on the job longer? Workers themselves say better pay, improved conditions, and greater recognition top the list. A separate study from PwC Austria suggests flexibility could be part of the answer — 75 percent of employees favor work models that adapt to different life stages, with teamwork and flexibility ranking even higher than salary in their priorities.

Employers Falling Short

Yet companies aren't keeping pace with those expectations. Nearly a quarter of respondents — 23 percent — say their employer fails to support their ability to work, with women feeling this gap more acutely. The strain is especially pronounced for those juggling caregiving duties: 83 percent report heightened psychological pressure. Financial planning for retirement also shows a gender divide, with 62 percent of men confident about their pension situation versus just 48 percent of women.

The Battle Over Age 73

Against this backdrop, policymakers are locked in a tug-of-war over the future of retirement age. An advisory circle around Economy Minister Katherina Reiche has floated the idea of eventually raising the retirement age to 73, modeled on Denmark's approach of linking retirement age to life expectancy.

Opponents are pushing back hard, insisting on preserving the right to retire without deductions after 45 years of contributions. While some in the CDU leadership want to scrap that rule, eastern German state premiers and trade unions warn it would deepen social divisions. In an open letter to Chancellor Merz, Mercedes employees have demanded the retention of partial retirement schemes and the 8-hour workday.

Meanwhile, the pension commission is proposing a redefinition of reduced earning capacity, one that would factor in a person's realistic chances of finding work. A so-called protection pension for older employees forced out of their professions for health reasons is also under discussion. A final decision is expected by the end of the year.

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