Economic necessity divides Europe’s post-retirement workforce.
BRUSSELS, BELGIUM — July 2026.
A growing number of Europeans continue working after receiving their first old-age pension, although their motivations differ sharply across the continent. In 2023, approximately 12.9 percent of pension recipients in the European Union remained employed during the following six months, while most either stopped working or were already outside the labor market. The most frequently reported reason was enjoying work and remaining productive, cited by 36.3 percent of those who continued. Financial necessity ranked second at 28.6 percent, revealing that retirement does not provide adequate economic security for many older citizens.
The financial pressure begins with the substantial difference between employment income and retirement benefits across European pension systems. Eurostat estimates that an EU worker earning €100 during the later stages of a career received an average pension equivalent to approximately €58 between the ages of 65 and 74 in 2023. That reduction can make it difficult to preserve housing, consumption, healthcare and other elements of the lifestyle maintained during full-time employment. Almost one in six pensioners faces a risk of poverty, demonstrating why retirement is not always a voluntary withdrawal from paid work.
Post-retirement employment varies enormously, ranging from only 1.7 percent of recent pensioners in Romania to 54.9 percent in Estonia. Latvia and Lithuania also recorded rates above 40 percent, while Sweden reached 41.7 percent and Norway stood at 37.7 percent. At the opposite end, Greece, Spain and Croatia reported rates of approximately 5 percent or less. These differences reflect pension regulations, labor-market structures, professional traditions and whether national systems permit people to combine wages and retirement benefits without major penalties.
A high rate of working pensioners does not automatically mean that economic hardship is the principal explanation. In Sweden, only 9.4 percent of those remaining employed described financial necessity as their main motivation, while the corresponding share in Norway was 9.8 percent. Many older people in northern European countries continue because they enjoy professional activity, value social interaction or can move into flexible and part-time arrangements. Better health, higher education and less physically demanding careers also make gradual retirement more realistic for some sections of the population.
The situation is markedly different in countries where pensions are lower and household finances remain more vulnerable. Financial necessity was cited by 68.5 percent of working pensioners in Cyprus, 54.3 percent in Romania and 53.6 percent in Bulgaria. The share reached 48.2 percent in Croatia and 47.9 percent in Latvia, while Portugal, Hungary, France and Germany also recorded substantial proportions. These figures suggest that employment after retirement can represent a survival strategy rather than an optional route to personal fulfillment or social participation.
Combining the number of people who remain employed with their stated motivations provides a clearer measure of involuntary post-retirement work. Across the EU, approximately 3.7 percent of pensioners continued working principally because they needed additional income to meet living expenses. Latvia recorded the highest overall proportion at 21.2 percent, followed closely by Cyprus at 20.3 percent, while Estonia also reached a double-digit level. Bulgaria, Hungary and Slovakia similarly reported comparatively large groups of pensioners working because their retirement income was insufficient.
Among the EU’s largest economies, Germany had the highest total share of pensioners working from financial necessity at 4.5 percent. France matched the EU average at 3.7 percent, while Italy remained below it at 2.8 percent. Spain recorded only 1 percent, the lowest level in the comparison, although this does not necessarily prove that Spanish pensioners enjoy greater financial security. Strict compatibility rules, labor-market conditions and cultural expectations can reduce formal employment even when households experience economic pressure.
Women may face particular difficulties because interrupted careers, unpaid caregiving and lower lifetime earnings frequently translate into smaller retirement benefits. Eurostat found that women who continued working were more likely than men to identify financial necessity as their primary reason. Pension adequacy therefore depends not only on retirement formulas, but also on employment opportunities and income accumulated over several decades. Policies addressing the gender pay gap, caregiving credits and access to occupational pensions can influence economic independence long after an individual leaves full-time work.
Europe’s aging population and persistent labor shortages are also encouraging governments and employers to reconsider the boundary between employment and retirement. Older workers possess experience and specialized knowledge that can be valuable in healthcare, education, engineering, skilled trades and other sectors struggling to replace departing employees. Flexible schedules, reduced hours and less physically demanding responsibilities can allow pensioners to remain active without recreating the pressures of full-time careers. However, extending working lives should remain a genuine choice rather than a substitute for pension systems capable of supporting a dignified retirement.
The figures reveal two contrasting versions of working after retirement that should not be treated as equivalent. For some Europeans, continued employment provides identity, purpose, social contact and an enjoyable transition into a new stage of life. For others, it reflects inadequate pensions, rising living costs and the inability to meet essential expenses without another source of income. Europe’s central challenge is to create conditions in which older people can continue working when they choose, but are not forced to do so simply to maintain a basic standard of living.
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