Enlarge image
Elderly woman with a pension decision: Longer life expectancy is an important reason for a longer period of income
Photo: Felix Kästle / dpa
The pay-as-you-go pension system is reaching its limits.
In order to still be able to finance it, the retirement age will gradually increase from 65 to 67 years from 2012 to 2031.
At the same time, however, the time it takes to draw pensions is getting longer and longer: the average duration of all pensions in 2020 rose to 20.2 years, as the German pension insurance company has now announced.
Ten years earlier it had been 18.5 years.
In the case of men, the duration of pension entitlements increased during this period from 16.2 to an average of 18.5 years - for women from 20.9 to 22.0 years.
In 2019 the average was 18.2 years for retirees and 21.7 years for female retirees.
As an important reason for the development of the period of drawing old-age pensions without disability and widow's pensions, about which the "Bild" newspaper had previously reported, the German pension insurance states the longer life expectancy.
Despite financing problems: pensions could rise sharply
The scientific advisory board at the Federal Ministry of Economics recently called for an even higher entry age due to the financing problems of the pension, which is linked to life expectancy. The Ifo Institute also advocated a further increase in the retirement age, otherwise the foreseeable additional costs could lead to higher VAT of 23 percent in 2030 and 27 percent in 2050. At the same time, the portion that the state adds to the pension fund continues to grow. Employer President Rainer Dulger warned this week: "The way it is now, the pension system will not be able to last."
Nevertheless, after the most recent zero round, the pensions for the more than 20 million pensioners in Germany are expected to rise again noticeably in the coming year.
According to the pension insurance report, there could be 4.8 percent more in the old states, 3.15 percent in 2023 - in eastern Germany even 5.56 and then 3.88 percent.
A spokesman for the Deutsche Rentenversicherung emphasized the adaptability of the pay-as-you-go pension insurance.
It will remain stable in the future if it is repeatedly adapted to current challenges.
A good economic development and a strong labor market are the basis for the continued positive development of the pension insurance.
According to the Federal Statistical Office, however, the German labor market could only be available to 42.6 million people in 2030 - one million fewer than in 2019. By 2060 the number could drop to around 38.5 million.
The main reason for the decrease in the number of economically active persons is the retirement of the baby boomer cohorts with high birth rates from the working age in the next 25 years.
Another possible reason for the longer drawing period for pensions: Many baby boomers would rather get out sooner rather than later, also because the retirement age cannot be pushed back any further, especially for physically demanding activities.
On the other hand, older people, especially the highly qualified, are more and more often employed when they reach retirement age.
apr / dpa