The transition from full-time employment to retirement often entails a significant shift in financial landscape for many Europeans. Eurostat data indicates that a person earning €100 between the ages of 50 and 59 can expect to receive just €58 in pension income between 65 and 74. This substantial drop has tangible consequences, pushing nearly one in six pensioners in the European Union to the brink of poverty. The resultant scenario sees a notable portion of these individuals continuing to work past their retirement age, driven by a complex interplay of financial necessity and a desire for continued engagement.
In 2023, the most recent year for which comprehensive data is available, 12.9% of individuals across the EU continued to work within six months of receiving their first old-age pension. This figure, however, masks considerable variation across the continent. Estonia stands out with a striking 54.9% of pensioners remaining in the workforce, followed by Latvia at 44.2% and Lithuania at 43.7%. Sweden also sees a substantial 41.7% of its retirees continuing to work, underscoring a regional trend in the Baltics and Nordics. In contrast, countries like Romania, Greece, Spain, and Croatia report significantly lower percentages, with Romania at a mere 1.7% and Greece at 4.2%. Professor Platon Tinios from Piraeus University noted that Greece’s historically strict stance against working pensioners softened due to economic crises and pension reforms, though a major policy change in 2022, encouraging more registered working pensioners, is not yet fully reflected in these figures.
While a significant portion of working pensioners cites enjoying their work and remaining productive as their primary motivation, financial necessity emerges as a critical factor for nearly 29% of this demographic. Dr. Olga Rajevska from Riga Stradins University highlighted that a high proportion of people working for financial reasons suggests an inadequacy in the respective pension systems. This is particularly evident in countries like Cyprus, where 68.5% of working pensioners state financial necessity as their driver, and in Romania and Bulgaria, where over half continue working for the same reason. Croatia, Latvia, Portugal, Hungary, France, and Germany also show substantial percentages of pensioners working due to financial strain, with Germany at 35.8% and France at 37.7%. Conversely, countries such as Sweden and Norway report much lower figures, with only 9.4% and 9.8% respectively, indicating more robust pension provisions or different societal expectations regarding retirement.
When examining the overall share of all pensioners working primarily out of financial necessity, the picture becomes even clearer. Across the EU, this figure stands at 3.7%. However, in Latvia, this rises sharply to 21.2%, with Cyprus following closely at 20.3%. Estonia and Lithuania also register double-digit percentages. Dr. Rajevska attributes this trend in the Baltic states to pensions that are “far below the European average,” compelling individuals to continue working simply to maintain a decent standard of living. Bulgaria, Hungary, and Slovakia also show significant proportions of pensioners working out of financial need, all above 7.5%. Among the larger economies, Germany records the highest rate at 4.5%, while Spain has the lowest at 1%.
Professor Kène Henkens from the Netherlands Interdisciplinary Demographic Institute points to a more nuanced reality beyond just financial need. While poor pensions undoubtedly drive many back to work, an increase in post-retirement work is also observed in countries with better pension systems. He suggests this is due to retirees being healthier and more educated than in previous generations, fostering a stronger connection to the labor market. Many, he notes, work for pleasure and social integration. This shift is also supported by evolving corporate attitudes, with employers becoming more positive about hiring older workers, partly due to changing demographics and persistent labor shortages. However, Henkens also cautions that these figures only capture those who *are* working, potentially masking a significant number of pensioners in poorer countries who *desire* to work but cannot find suitable employment, highlighting an unquantified layer of involuntary unemployment among retirees. Professor Lauri Leppik from Tallinn University also adds that “financial necessity” itself is a relative concept, not always directly tied to the absolute amount of a public pension, suggesting a more complex interaction of factors influencing post-retirement employment.
