Germans to work harder and retire at 69 – the formula proposed by an economist so that the current system is sustainable
Germans shopping in a supermarket, photo: Imago / Imago Stock and People / Profimedia
The Germans should stay longer in the field of work to protect the pension system and support the growth, said economist Martin Werding, the German press agency DPA, taken over by AGERPRES, reports on Saturday.
Despite the lack of popularity of demands to extend the professional life of the Germans, people live more and the current pension system is unsustainable, said Martin Werding for the newspaper Rheinische Post.
Germany is already in the process of increasing retirement age from 65 to 67 by 2031, but this increase should continue, Werding, a member of the Council of Economic Experts, an body that provides counseling.
Too few children to support the system
While in the 1960s people benefited from a pension for 10 years on average, currently the duration of the Germans has increased to 20 years. As people get out of the field of work, there are too few children to support the system, Werding said.
The economist proposes an approach based on a formula: every 10 years with which life expectancy increases, two thirds of this time should be spent at work and one third at retirement.
According to this model, the standard retirement age would increase by six months every decade, reaching 68 in 2050 and 69 in 2070.
Why does the Minister of Labor's proposals reject the proposals
The Minister of Labor, Bärbel Bas, a member of the Social-Democratic Party, called the discussion about the prolongation of professional life a “false debate”, noting that many people are not able to reach the retirement age for health reasons.
She told ediktonsnetzwerk Deutschland (RND) that for these people such proposals it means a reduction in the pension and opposed the idea of abolishing the anticipated retirement option for those who contributed to the pension system for a long time. Someone who worked for 45 years must be able to stop at some point, she said.
Werding also asked for a re -evaluation of the decrease of the pension for early retirement. He argued that the current 3.6% discount per year for anticipated pensioners is too luscious and suggested a decrease between 5 and 7%.
