IFO Institute: Experts advocate a later retirement age and link it to life expectancy

IFO Institute: Experts advocate a later retirement age and link it to life expectancy

According to a report by www.n-tv.de The IFO Institute suggests linking the retirement age to increasing life expectancy and aligning pension increases with the inflation rate. The institute's experts argue that the retirement age should be adjusted to the increasing life expectancy in order to relieve the burden on pension funds in the long term and to keep the ratio of pensioners to employed people stable.

Such a measure could have a significant impact on the labor market and the financial sector. Later retirement could lead people to stay in the labor market longer, which could lead to increased productivity and economic growth. However, it could also lead to a longer period of unemployment for younger job seekers as older workers stay in their jobs longer.

Changing pension increases from wage increases to inflation could help slow pension spending and stabilize pension funds. However, it would also mean that retirees may have less purchasing power as their pensions do not rise at the same rate as wages.

Including the self-employed and civil servants in paying contributions could relieve the burden on pension funds in the short term, but lead to higher payouts in the long term. This could lead to a significant burden on pension funds.

Overall, the IFO Institute's proposed measures could significantly change the pension system and the world of work in Germany. However, it is important to consider that such changes also have socio-political implications and may have far-reaching consequences for citizens.