Future-proof German pension system: The experts agree – a pension at 67 is not enough!

Future-proof German pension system: The experts agree – a pension at 67 is not enough!

According to a report by www.derwesten.de,

The German pension experts agree: the retirement age of 67 cannot be maintained. It is recommended that the retirement age be linked to increasing life expectancy. Martin Werding, an economist, suggests that the retirement age should be increased by half a year every ten years if life expectancy increases by one year. Based on this formula, he predicts that the retirement age should rise to 68 by 2051 and could even rise to 69 by 2071.

As economist Monika Schnitzer emphasizes, a longer working life would particularly affect the younger generations who were born shortly after the turn of the millennium and therefore have a significantly longer working life ahead of them. This proposal would also place a heavy financial burden on other generations.

These changes could have a significant long-term impact on the labor market and the financial sector. A longer working life could lead to a change in the age structure in companies and possibly reduce the labor shortage. Additionally, longer working hours would reduce the pension gap, which could lead to stronger retirement savings for workers.

However, longer working lives would also mean that certain industries and companies that rely on a younger, more dynamic workforce could be challenged. In addition, tax revenue for pension provision could increase, but at the same time the burden on the social system could increase as pension entitlements are postponed.

Overall, adjusting the retirement age to reflect increasing life expectancy would be a complex strategy that would need to be carefully considered and planned to take into account long-term effects on the economy and the financial sector.