PENSION CHALLENGE

Pushing Back Retirement

Bundesbank president Jens Weidmann at open house day in Frankfurt. Source: DPA
Bundesbank President Jens Weidmann (center) thinks Germans will need to get used to working longer.
  • Why it matters

    Why it matters

    Germany’s state pension system faces an uncertain future due to the country’s aging population.

  • Facts

    Facts

    • There are currently 53 retirees for every 100 workers but that figure will grow to 68 by 2030.
    • Germany is gradually increasing its retirement age from 65 to 67 in order to keep pensions contributions capped at 22 percent of income and ensure pension benefits don’t fall below 43 percent of income.
    • The Bundesbank warned pension benefits would fall to 40 percent of income if the government’s projections are extended through 2060.
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    Audio

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Germans might have to work even longer before they can enjoy their golden years.

In its monthly report, the Bundesbank has proposed increasing the retirement age to 69 by 2060 to stabilize the country’s pension system in the face of negative demographic trends.

According to the central bank, further adjustments to Germany’s pension system are “unavoidable” given an aging population due to the increase in life expectancy and the decline in the birth rate.

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