This is my new Field Note

Germany just approved legislation that’s turning traditional retirement on its head. From January 2026, workers over 67 who stay employed can earn up to €2,000 per month tax-free – on top of their pension. It’s called the “Aktivrente” (active pension), and it’s Germany’s response to a shrinking workforce and mounting labour shortages.

The numbers tell the story

Germany’s workforce is projected to shrink significantly in coming years
The initiative will cost around €890 million annually from 2026-2030
Only applies to those contributing to social security (self-employed excluded)

Australia faces the same crisis, just without the financial incentives

While Germany throws money at the problem, we’re busy discriminating against the very workers we desperately need:

90% of Australians agree ageism exists here (AHRC)
Workers over 50 experiencing age discrimination has doubled since 2016 – now at 20.7%
Nearly 1 in 4 HR professionals consider workers aged 51-55 as “older” (up from 10% just two years ago)
Only 28% of employers are open to hiring someone aged 65+

Meanwhile, our demographic time bomb is ticking

In 1970, 5 working-age Australians supported each person over 65. By 2042? Just 2.5 people
Australia’s 65+ population will grow from 4.9 million (2025) to 6.66 million by 2041 – that’s 1.76 million more older Australians in just 16 years
The 85+ cohort will more than double from 600,000 to 1.28 million by 2041

And young workers aren't coming to replace them

Our fertility rate has crashed to 1.48 – well below the 2.1 replacement rate (and we haven’t hit replacement since 1975)
The working-age population (15-64) is shrinking from 65% to between 59-60% by 2071
Youth (15-24) have declined from 17% to just 12% of our population
2023 saw the lowest number of births since 2006

And it gets worse

22% of Australian jobs will be fundamentally transformed by 2030 through technology and automation. We need massive reskilling. Yet employers say skill gaps are their biggest barrier to transformation.

We’re getting squeezed from both ends: fewer young people entering the workforce, massive skill transformation required, and we’re actively discriminating against experienced workers who could bridge that gap.

The OECD says boosting employment of older workers could offset half the decline in our GDP per capita growth. Yet 72% of workers over 50 feel ageism locks them out of the workforce.

So what should Australian leaders be asking?

Why are we discriminating against workers we desperately need while facing the biggest skills transformation in a generation?
Can we afford to lose experienced professionals when 22% of jobs are being fundamentally reshaped by 2030?
Are we creating workplaces where experienced professionals want to stay, or are we actively pushing them out?
Could financial incentives work here, combined with our focus on reskilling and immigration?

Germany’s paying older workers to stay. Australia’s doing the opposite – discriminating against them while scrambling to import talent and upskill whoever’s left.

The real question isn’t whether we can afford to keep older workers. It’s whether we can afford the luxury of ageism when our economy depends on them bridging a massive skills gap with fewer young people coming through.

What’s your take? Should Australia adopt financial incentives like Germany, or do we need to fundamentally dismantle ageist attitudes first? Or both?

I work with healthcare professionals and corporate leaders navigating career transitions, leadership challenges, and ageist workplace cultures. If you’re an experienced professional being told you’re “overqualified” while watching organisations struggle with the very expertise you have, or a leader trying to build genuinely age-inclusive teams, let’s talk.

Germany Sources

Reuters, Euronews, The Local (Oct 2025) Australian data:
AHRC, OECD Employment Outlook 2025, Australian Seniors Series, COTA Australia