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Pension: Employees leave a little earlier – with higher salaries

2022-05-24T05:23:50.537Z


Politicians and economists are arguing about retirement at 70. According to a report, however, the age of entry has recently fallen slightly. Does that have something to do with the higher salaries?


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Older workers: Men retired on average at the age of 64.05

Photo: Andreas Prost / IMAGO

On the one hand, the number of people who are in work after retirement age is increasing: more than a million over 67 are working.

On average, however, according to a recent report, employees in 2021 retired a little earlier and with higher salaries than in previous years.

Specifically, a total of 1.435 million employees retired in 2021, as reported by the "Bild" newspaper, citing figures from the German pension insurance.

On average, men switched to old-age pensions at the age of 64.05.

In 2020, the retirement age was still 64.07 years.

Women retired at the age of 64.18 compared to 64.24 the previous year.

Despite the recent decline, however, there has been a different trend for a long time: the average insurance period has increased by four years since the beginning of the noughties.

In 2000, only ten percent of 60- to 64-year-olds were employed subject to pension insurance, recently it was more than 40 percent.

The fact that this is now changing, at least slightly, could also be due to the fact that the salaries of new pensioners have increased.

Men received 1,204 euros (2020: 1,171) net of old-age pensions and women 856 euros (2020: 827).

In the case of disability pensions, men received an average of EUR 956 (2020: EUR 914) net and women EUR 882 (EUR 851).

On average 1579 euros with 45 years of insurance

The highest average pensions were given to seniors who retired after 45 insurance years (»pension at 63«) with no deductions.

After deducting health and long-term care insurance contributions, the average pension payment for men was EUR 1,579 and for women EUR 1,235.

An important reason for the poor situation of the pay-as-you-go pension system is the concentrated retirement of the baby boomer generation from working life.

However, simply letting them and future generations work longer will be difficult.

It is true that older people – especially those with high qualifications – are more and more frequently employed when they reach retirement age.

However, many baby boomers prefer to get out sooner rather than later.

In addition, the retirement age cannot be pushed back at will, especially in the case of physically demanding activities.

The traffic light coalition could not agree on pension cuts or a higher retirement age.

Recently, however, some economists had started a debate on the subject again and brought retirement at 70 into play.

The head of the German pension insurance, Gundula Roßbach, had warned that politicians had to "observe the development closely".

Apr/AFP

Source: spiegel

All business articles on 2022-05-24

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