Tuesday, August 16, 2016

Germany will raise its retirement age to 69 years to 2060 – Business & Finance online

The debate about the sustainability of pension systems is occurring worldwide. Yesterday, the German central bank (Bundesbank) recommended in its monthly report raising the retirement age to 69 years by 2060.

“The Germans must work longer and increase their contributions to the retirement, “the Bundesbank according to DPA.

Today, the German country and is scheduled to gradually raise the retirement age to 67 years by 2030 and raise the contribution rate from the current 18, 7% to 22%. The German central bank estimates “that this increase will not be enough for the German government to maintain state pensions to the level that aims -of at least 43% of average- income since the early 2050 onwards due to increased hope of life of the population, “notes Reuters.

” it is inevitable to make changes to ensure financial stability (the state pension system), “said the German central bank, noting that” even in this case (with retirement age in 69 years) would have to wait a rise in the contribution to the retirement of the current 18.7% to almost 24% of gross salary of the employee. “

there is no room for new agreements

the German government yesterday ruled out the option of raising the retirement age to 69 years. The spokesman for Chancellor Angela Merkel, Steffen Seibert, said that “the German government is in favor of retirement at 67, which is a sensible and necessary measure given the demographic development in Germany is why we will implement what we agreed.: step by step “.

While Seibert recognizes that” there are always discussions about it and sometimes the Bundesbank participates in them “, it is unlikely that the proposal will be addressed before the elections of 2017. in April, Finance Minister, Wolfgang Schaeuble, was criticized after proposing to link retirement to life expectancy.

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