Retirees in Germany heading back to work

At age 70, Mr Pete Maie appears nervous at the start of a job interview to work as a part-time parcel delivery driver for a German logistics company.

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COLOGNE, Germany - At age 70, Mr Pete Maie appears nervous at the start of a job interview to work as a part-time parcel delivery driver for a German logistics company.

"It's a little stressful but I'm happy to be here," said the former soldier and retired logistics manager, a blue shirt tucked neatly into his trousers.

Five years after he formally retired, Mr Maie is re-entering the labour market with the help of specialised recruitment agency Unique Seniors.

"I'm available immediately and ready to work as long as my body allows," he said.

If it were up to Chancellor Friedrich Merz's government, many elderly people would follow Mr Maie's lead to help fast-ageing Germany grapple with the twin challenges of a high pension burden and a shortage of skilled labour.

By 2024, the cost of the pension system had ballooned to €408 billion (S$615 billion) according to the Labour Ministry - a 60 per cent rise from 2010.

Retirees now represent a quarter of the national population of 83 million, and workforce contributions are no longer enough to cover the cost of paying their retirement benefits.

Meanwhile, the skilled labour shortage has seen employers as diverse as retail chains, banks and the armed forces compete frantically to attract young workers and trainees.