Pension expert calls for the retirement age to be increased - financial expert analyzes urgent measures

Pension expert calls for the retirement age to be increased - financial expert analyzes urgent measures

According to a report by www.wa.de,

New figures don't make Germany look good when it comes to pensions. A generation has to think about it. A higher retirement age should help.

Germany has a demographic problem: the number of Germans of working age will shrink by 23 percent by 2062. This was revealed by the OECD’s “Pensions at a Glance” report. Due to the aging population, the pension system is reaching its limits, as there are more pensioners for fewer employed people. Although Germany has a comparatively high employment rate in the 60-64 age group, the younger generation is expected to have lower replacement rates than the OECD average. An average employee who starts working life in Germany at the age of 22, pays social contributions and retires without deductions at the age of 67 will only receive around 55 percent of his last income as a pension. On average in the OECD, this replacement rate is higher at 61 percent.

In view of these challenges, OECD pension expert Hervé Boulhol suggests further increasing the retirement age. He argues that due to increasing life expectancy, an increase in the retirement age is necessary to keep pension funds in balance. Chancellor Olaf Scholz has already emphasized that the retirement age of 67 must be maintained at some point. In Germany, too, the retirement age is gradually being increased. However, current developments show that a critical discussion about the future of pension policy is essential.