Retirement in Germany: The number of pensioners increases as pension funds in Germany are facing a huge deficit. The president of the employer’s association Gesamtmetall said that because Germans are getting older, he is demanding that the retirement age be raised to 70 (the current age of retirement is 67) according to Bild .
“In the next few years, we will have to talk about the retirement age of 69 to 70,” Wolf said in an interview with media group Funke. Otherwise, the German pension fund is at risk of bankruptcy.
The leading German economist Jochen Pimpertz from the research institute IW is also calling for a rise in the retirement age . “Politics can no longer ignore reality,” he told BILD. He explained that “the number of pensioners is steadily increasing and children cannot be expected to start paying contributions from the moment they are born.”
Pimpertz warns: By the end of the 2030’s alone, the number of retirees will increase by 4 million. At the same time, the number of taxpayers will decrease by about 2.5 million. “This will put a lot of pressure on the pension fund and make you have financial difficulties.”
Retirement in Germany: What is the solution?
To reduce the gap, contribution rates should increase from the current 18.6 to over 22% by 2040. Retirees, on the other hand, should be able to manage with less money: the level of the pension (compared to wages) it would fall below 46% (currently it is almost 49%).
Therefore, Pimpertz believes: “We have no choice but to discuss a retirement age of 70!”