Labor shortage in Germany: Applications for pensions at 63 increase by 16.8 percent

Labor shortage in Germany: Applications for pensions at 63 increase by 16.8 percent

An analysis by the Tagesspiegel shows that the number of applications for “pension at 63” has risen sharply. By the end of September there had already been 245,289 new applications, which corresponds to an increase of 16.8 percent compared to the previous year. The increase is attributed, among other things, to the retirement of the baby boomer generation. At the end of April there were already a total of 2.2 million users of this type of pension. Pensions for this group are high, causing the monthly cost of pensions to rise to 3.7 billion euros. A study by the demographic network ddn also shows that almost two thirds of employees want to leave their job before the statutory retirement age, even if they have to accept deductions for doing so. A large majority would like to be able to retire by the age of 63 at the latest, while less than 15 percent of working people under the age of 30 can imagine working until the age of 67.

These figures have possible implications for the labor market and the financial sector. The increasing retirement of the baby boomer generation could further increase the labor shortage as there are fewer workers available. Companies may have difficulty finding qualified staff, which could affect productivity and competitiveness.

On the financial side, the rising costs of “pension at 63” will pose a challenge for the pension insurance system and the state budget. The monthly costs of 3.7 billion euros could not be sustainable in the long term. Measures may need to be taken to keep the pension system financially stable, such as increasing the retirement age or reassessing the pension system.

It remains to be seen how this development will develop in the future and what specific measures will be taken to mitigate the impact on the labor market and the financial sector.

Source: According to a report by www.tagesspiegel.de