Germany has launched a new active retirement plan to address its aging population and skilled labor shortage.

The government approved a bill that provides tax exemptions of up to 2,000 euros per month for those who continue to work after reaching retirement age.

This new regulation serves as an additional incentive for economic growth in Germany. It will allow older workers to stay in their jobs longer, boosting productivity and addressing labor shortages.

German Finance Minister Lars Klingbeil stated that this bill will further accelerate economic growth. The ability for retirees to continue working will strengthen the labor market.