Baby boomer in the pension rush: cost explosion threatens!
Baby boomer in the pension rush: cost explosion threatens!
A current analysis shows that almost half of the baby boomers retire prematurely in retirement age. According to a study by the Institute of German Economy (IW), this is about 1.8 million people who have reached retirement age by 2023. For example, over 55 percent of the new players decide for an early retirement. From 2025 it is also expected that at least one million baby boomers will receive statutory pension annually before they reach the rule age. This development represents a significant challenge for the pension funds, since they are under enormous cost pressure and the pension expenses could increase to over 740 billion euros by 2045, such as Merkur reported.
A central component of the current pension system is the pension for long -term and particularly long -standing insured persons, which enables premature enclosure without discounts after 45 years of insurance. In addition, the IW study shows that the increase in pensioners will lead to higher contributions and taxes in relation to the contribution payments.
demographic challenges
Demographic development presents pension policy with significant challenges. In particular, dealing with the retirement of the baby boom generation and the occurrence of weaknesses in the birth of the working life requires new solutions. The Federal Center for Political Education emphasizes that the pension policy must master the conflict between livelihood in old age and financial sustainability of the pension system.
An important aspect in this context is the increasing life expectancy. This must be taken into account in the long term in the event of future adjustments to the retirement age. Since the introduction of the "sustainability factor" in 2005 and the later replacement by the "double stop line" in 2018, efforts have to be seen to stabilize the level of pension of at least 48 percent of the average wage by 2025. However, activating the sustainability factor could lead to higher contributions and lower pension levels.
political measures and outlook
The traffic light coalition plans to extend the double stop line, but this will not solve the demographic challenges. The political debate also focuses on the need to encourage older people through an “active pension” to stay in working life longer. The IW recommends keeping the birth -strong vintages in the job for as long as possible. Accordingly, the pension reform committee will present results until the middle of the legislative period.
In view of these challenges, experts call for the introduction of a generation factor to adapt the contribution rate and pension level. Suggestions such as the Austrian model or the base protection model are also discussed, whereby there is still a need for flexibility in retirement age for people with health restrictions. However, the statutory pension can remain stable as long as the productivity progress remains high, as Details
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